Chinese shipyard operator JES International Holdings is to enter a termination and settlement agreement in relation to the proposed sale of its shipbuilding subsidiaries.
The parties opted for the move as they were unable to reach an agreement on the extension of the long-stop date of the proposed disposal, which was December 31, 2017.
The deal would now be mutually terminated, with no claims to be made by either party against the other party, JES International said, adding that it would continue to be the legal and beneficial owner of the shipbuilding subsidiaries.
Additionally, the managers have been responsible for the management of the shipbuilding subsidiaries, and the company has not and will not be liable for any outgoings of the shipbuilding subsidiaries.
Regarding the proposed restructuring of the shipbuilding subsidiaries, JES International informed that the managers have had prospective investors, however, no firm offer has been received yet.
JES International, which is currently considering its cash position in relation to all outstanding liabilities and cashflow forecasts, said it had been contacted by potential investors expressing interests to inject new businesses into the company.
“The company is reviewing the commercial terms and financials of such new businesses with a view to maximise shareholder value in the event that any transactions do materialise,” JES International said.