Chinese domestic liner shipping group Antong Holdings announced on 19 December 2020 that it has completed its year-long restructuring process.
Alluding to its two main subsidiaries, Quanzhou Ansheng Shipping and Quanzhou Antong Logistics, Antong said, “After the company began restructuring, we have resolved the debt crisis of our two core subsidiaries through debt settlement, capital investment, and financial assistance. These have greatly improved the subsidiaries’ balance sheets.”
Antong said in the filing to the Shanghai Stock Exchange that the restructuring will have a positive impact on its 2020 earnings.
Fujian Zhaohang Logistics, the government-led entity that is restructuring the struggling Chinese domestic liner shipping group Antong Holdings, with 12 other Chinese investors, injected CNY4.53 billion (US$688 million) into the company in November. The funds enabled Antong to repay its creditors.
Of the funds, CNY1.35 billion (US$205.24 million) came from Fujian Zhaohang, a joint venture between China Merchants Port Holdings, AVIC Trust and Quanzhou’s municipal government.
Antong provides shipping services through Quanzhou Ansheng Shipping, which with 144,316TEU of fleet capacity, is the second largest Chinese domestic container carrier after Zhonggu Shipping Group.
From February 2017 to March 2019, Guo Dongze, one of the two brothers who are the company’s major shareholders, provided unauthorised guarantees amounting to CNY633.36 million (US$90.15 million) for a number of transactions involving the company, resulting in around 30 lawsuits, seeking around CNY600 million (US$86.8 million).
The Guo brothers have left Antong’s management and post-restructuring, China Merchants Port Holdings’ Vice-Deputy General Manager, Zheng Shaoping, will oversee the company.
Martina Li
Asia Correspondent
