- Business & Finance
The Supreme People’s Court of China has blacklisted Jiangsu Eastern Heavy Industry (JEHI), a subsidiary of Singapore-listed JES International for failing to settle its debt obligations.
JEHI has yet to pay up RMB15m (USD 2.4m) stemming from 5 separate lawsuits filed between January and April 2014 by various equipment suppliers, Seatrade Global reports.
The Supreme Court has put JEHI on a so-called list of dishonest companies, comprised of the business entities which have the financial means, but refuse to pay their debts.
JES claims that the accumulated debts are a part of warranty funds, which will be paid to the suppliers upon the expiry of the equipment warranties.
“According to the court’s award, suppliers should complete all defects and JEHI should return them the 5-10% (warranty fund).
The suppliers asked the court to enforce JEHI to repay the warranty funds, but since the suppliers have not completed all defects, JEHI refused to release the warranty funds,” JES spokesperson said.
World Maritime News Staff, July 25, 2014