The Jiangsu Jingjiang Court has ordered for the seven shipbuilding subsidiaries of the Chinese group JES International Holdings Limited to cease operation and to be wound up.
JES said that the decision was made after its judicial managers failed to submit a draft of a revival plan according to schedule.
“The company has been considering the commercial terms of the proposed disposal and will update shareholders as soon as the company has come to a decision,” Jin Ju, Chief Executive Officer of the company said in a statement .
“In the event that the proposed disposal is unable to proceed, the company will continue to be the legal and beneficial owner of the shipbuilding subsidiaries. Further and as previously announced, the managers had been responsible for the management of the shipbuilding subsidiaries, and the company has not and will not be liable for any outgoings of the shipbuilding subsidiaries.”
The decision is being reported on the back of the company’s intentions to sell shipbuilding subsidiaries fell through in February this year. The sale was being considered after the group encountered commercial uncertainty from bank debts and delays in its restructuring process.