Huarongs Shipyard Sale Delayed

zoom China Huarong Energy Company Limited, formerly known as China Rongsheng Heavy Industries Group Holdings Ltd, said that the shipyard sale and purchase agreement between the company and the potential purchaser has not been concluded before the expiry of the MOU. The sale, which forms part of the restructuring deal of the companys subsidiary Jiangsu Rongsheng Heavy Industries, was agreed under an MoU signed with an undisclosed buyer back in March. Under the deal, the buyer had time until June 30 to proceed with the purchase of the related core assets and liabilities of the onshore shipbuilding and offshore engineering business. The company and the potential purchaser are continuing the process of negotiation on the potential restructuring involving the Potential Transaction, Hurong Energy said. Hurong said that Jiangsu Rongsheng Heavy Industries has obtained conditional letters of consent from all of its creditor banks relating to the disposal of its assets and liabilities. The group is now assisting the potential purchaser to establish an efficient and competitive professional core management team to enable Jiangsu Rongsheng Heavy Industries to enter into full production and obtain new orders immediately after completion of the potential restructuring, the company added.