Yangzijiang Shipbuilding says winding up of unit won’t impact group’s operations, financial condition
Wong Pei Ting
YANGZIJIANG Shipbuilding on Sunday (Mar 19) said its subsidiary, Yangzijiang Shipping, is considering appealing against the Singapore High Court’s order last Friday for it to wind up over US$4.8 million in unpaid debt.
But even if the unit has to wind up, the group said that this would not materially impact operations and financial condition for its financial year ending Dec 31, 2023.
This is because Yangzijiang Shipping is “dormant”, and its net asset value is “negligible” compared to the group’s, it stated in a bourse filing.
The appeal’s deadline is four weeks from last Friday.
The application to wind up Yangzijiang Shipping was brought by Trinity Seatrading. The US$4.8 million liability arose from an arbitration award in the United Kingdom to the Liberian company, which declined to take delivery of an oil tanker sold by Yangzijiang Shipping as the vessel was not made according to specifications.
The US$4.8 million amount comprises over S$3.2 million in damages and close to S$1.6 million in accrued interest. The arbitration award had also called for the refund of the US$12.2 million deposit Trinity Seatrading had paid, and this was refunded.
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The group, in its filling, highlighted that its unit’s lawyers argued in court that the winding up application should be stayed pending the resolution of a civil law claim which the unit had taken out against certain parties in China last October. This civil law claim is over an alleged conspiracy to defraud the unit in connection with the dispute.
With Friday’s winding up order, liquidators were appointed for the unit. They are Gary Loh Weng Fatt, Leow Quek Shiong and Seah Roh Lin of BDO Advisory.
The court had also ordered for costs of the proceedings to be assessed, if not agreed, and paid out of Yangzijiang Shipping’s assets.
Shares of Yangzijiang Shipbuilding closed flat at S$1.22 on Friday.
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