Troubled Shipbuilder Turns to Stock Market to Allay Creditors' Fears

(Beijing) – A shipbuilder that has fallen on difficult times wants to settle three-fourths of its 22.6 billion yuan debt with its bank creditors and suppliers by issuing 17.1 billion new shares.

Once the country's biggest private shipbuilder, Huarong Energy, better known by its former name Rongsheng Heavy Industries Group Holdings, said in a filing to the Hong Kong Stock Exchange on March 8 that it will issue 14.1 billion shares to 22 bank creditors and 3 billion shares to 1,000 suppliers at HK$1.2 per share.