Yangzijiang Shipbuilding unit faces US$4.8m winding-up petition

A COMPANY has applied for the winding up of a subsidiary of listed Yangzijiang Shipbuilding and is seeking an alleged debt amount of US$4.8 million.

Trinity Seatrading, a Liberian company, stated in an advertisement published on Friday (Jan 6) that it had on Dec 23, 2022, in the capacity of a creditor, made an application in the Singapore High Court to wind up Yangzijiang Shipping.

In a bourse filing on Sunday, Yangzijiang Shipbuilding said the claim originated from a dispute for the sale of an oil tanker by Yangzijiang Shipping to Trinity Seatrading.

Yangzijiang Shipping’s alleged debt amount of US$4.8 million consists of damages of US$3.3 million and accrued interest of US$1.6 million. The group said it is “currently taking legal advice and considering its options” in respect of the winding-up application, which includes resisting the application, as well as the next steps to be taken.

It added that it does not expect the winding up application to have any material impact on its net earnings per share or net tangible assets of the company or the group for the current financial year ending Dec 31, 2023.

Trinity Seatrading’s application will be heard on Jan 20.

A search with the Accounting and Corporate Regulatory Authority showed that one of Yangzijiang Shipping’s directors is Ren Letian, the executive chairman and chief executive of mainboard-listed Yangzijiang Shipbuilding.

The China-based shipbuilder’s 2021 annual report listed the 2012-incorporated Yangzijiang Shipping as its wholly-owned subsidiary that is in investment holding and shipping-related businesses.

Yangzijiang Shipbuilding was one of the most active counters on Friday with a trading volume of 62.2 million shares. The counter closed 4.2 per cent higher at S$1.23, a day after a DBS research analyst recommended a “buy” on the stock.