JES International Holdings Limited informed that it has ceased operations and production of its existing business.
The group added that it was currently maintaining a skeletal staff (comprising of key executive officers, as well as key administrative and finance personnel and security) to run the group as part of its cost controlling process.
The move comes in the wake of the shipbuilder’s efforts to replace missing group paraphernalia following the company’s announcement on 2 July 2015.
JES said that it has since obtained the administrative records and common seals of two of its subsidiaries, JEHI and Jiangsu New Eastern Marine Engineering Equipment Co., whereas it is still working to replace the rest of the missing paraphernalia of Jiangsu Nereus Shipyard, JYJJP Eastern Shipyard Supplies Co. Ltd and Jingjiang Eastern Heavy Steel Structure.
The group has also lodged a police report with the local authorities in the PRC against the JX Associates for recovery of the missing financial records of the group’s subsidiaries.
According to JES, paper financial records of JNS, JES Supplies, JNEME are currently still in the possession of the JX Associates.
As previously announced, the group has since taken legal action against Ms Ju Li Li for the unauthorised removal of the group’s documents, and is currently considering taking legal action against the JX Associates.
With respect to the group’s restructuring process, JES said that that there have been no material updates as to a decision regarding the application.
The group is currently appealing to the Jiangsu High Court its objection to the Taizhou Court’s decision to reject the restructuring application.
The group said that it has since been advised by its legal counsel in the PRC handling the case, Jiang Su Fa De Yong Heng Law Office, that “ barring unforeseen and delays by the Jiangsu High Court, the decision is expected to be issued by the Jiangsu High Court on or about November 2015.”
Acting on the notice, JES said that in the interim, the company has already commenced negotiation with potential investors and its creditors on the restructuring proposal to be submitted to the Jiangsu High Court in the event that the application is decided in JEHI’s favour.