Yangzijiang Shipbuilding (Holdings)’s subsidiary Yangzijiang Shipping has received a winding up application by Trinity Seatrading, seeking US$4.8 million.
According to Yangzijiang in an SGX announcement on Jan 8, the claim was from the arbitration outcome of a dispute between the two parties and consists of US$3.25 million in damages plus accrued interest of US$1.59 million.
Yangzijiang Shipping had earlier sold an oil tanker to the claimant, a Liberian company.
According to Yangzijiang Shipbuilding (Holdings), the listed entity, the hearing date for the Winding Up Application has been fixed on January 20 2023.
“Notwithstanding the filing of the winding up application, the group’s businesses and operations are not affected by the Winding Up Application,” the company says, noting that this legal action is not likely to have any material impact on its earnings or NTA for the current year ending Dec 2023.
“The company is currently taking legal advice and considering its options in respect of the winding up Application (including resisting the winding up application) and the next steps to be taken,” Yangzijiang Shipbuilding (Holdings) adds.
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For the half year ended June 30 2022, the company reported earnings from continuing operations of RMB1.17 billion, up 32% y-o-y. Revenue in the same period was up 70% y-o-y to RMB9.7 billion.
The company has an order book of more than US$10 billion.
Yangzijiang shares closed at $1.23 on Jan 6, up 4.24% for the day.
