25 September 2013

[250913.EN.SEA] Shagang Shipping Releases Busted Chinese Cruise Ship After HNA Pays Up

HONG KONG's Shagang Shipping has announced that it has released the Chinese cruise liner the Henna it had arrested in Korea after receiving US$2.7 million from the HNA Group for partial payment of US$58 million it allegedly owes.

"HNA Group Company Limited has continued to resist their obligations, whilst hiding behind a very complex corporate structure which prevents creditors from attaching their assets through layers of companies incorporated around the world," said a Shagang official.

The ship was arrested on Friday September 13 in Jeju, Korea with 2,520 people on board, including 1,659 passengers and 861 crew. Its arrest followed a protracted legal battle with HNA Group, based in Hainan, over the continuing non-payment of US$58 million in unpaid debts.

Advisers to Shagang Shipping said that about 1,100 passengers were on September 15 repatriated to China by chartered aircraft. The rest of the passengers will be offered a tour of Korea's Jeju Island once they disembarked the vessel.

Shagang Shipping said it was able to demonstrate to the Korean Court that HNA were the actual owners of the vessel, which the Korean judge accepted and ordered the arrest.

Shagang Shipping said it will continue to press its long-standing claims against HNA for the rest of the $58 million.

Over the course of two years Shagang Shipping obtained six arbitration awards against Grand China Shipping, and then had to enforce the awards to get paid.

Due to their financial circumstances and failure to meet their debts to a number of creditors, the affairs of Grand China Shipping were wound up by a Hong Kong bankruptcy court earlier this year.


Source : HKSG.

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