China Huarong Energy Company Limited, formerly known as China Rongsheng Heavy Industries, has identified a Chinese company listed on a stock exchange in China as a potential buyer of its Jiangsu Rongsheng Heavy Industries shipyard.
The undisclosed buyer is further negotiating with the China Huarong regarding the list and scope of the relevant assets and liabilities, and the terms of the potential transaction.
The negotiations relating to the potential restructuring of the shipyard are progressing well, China Huarong said in a stock filing.
The group has already obtained letters of consent from various major creditor banks which agreed to various matters in relation to, amongst other things, the disposal of assets and liabilities of Jiangsu Rongsheng.
However, China Huarong warned that the transaction is subject to certain provisions, including the signing of a formal transaction agreement, the final terms and conditions of which are still under further negotiations by the parties.