Fujian Zhaohang Logistics, the government-led entity that is restructuring struggling Chinese domestic liner shipping group Antong Holdings, has, with 12 other Chinese investors, injected CNY4.53 billion (US$688 million) into the company.
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.
Following the cash injection, Antong’s next step will be to implement restructuring in line with its reorganisation plan and repay debts within the period specified in the plan.
Antong provides shipping services through its subsidiary, Quanzhou Ansheng Shipping, which with around 160,000TEU of fleet capacity, is the second largest Chinese domestic container carrier after Zhonggu Shipping Group.
The other 12 investors are mainly Chinese financial institutions, apart from Yirun Supply Chain Management, which is also an AVIC unit.
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.
The provision of external guarantees resulted in around 30 lawsuits filed against Antong Holdings, seeking around CNY600 million (US$86.8 million), leading to financial pressures and the group being placed under court-led restructuring in December 2019.
Martina Li
Asia Correspondent
