Troubled Chinese Shipbuilding Group JES Suspends Operations

Chinese shipbuilding and engineering group JES International says it has ceased operations and manufacturing so as to management prices because it struggles with total disarray inside the firm and its subsidiaries.

JES International Group mentioned Thursday that it’s now right down to only a ‘skeletal staff’ comprising of some firm executives, in addition to key administrative employees, finance personnel and safety personnel wanted to run the group.

In a assertion launched Thursday, the group additionally up to date on points relating to lacking monetary paperwork and its enchantment over a proposed restructuring utility that was rejected by a Chinese court docket.

Regarding the lacking paperwork, JES International says it has recovered the executive information and customary seals of two of its subsidiaries, and it’s nonetheless within the technique of recovering the fabric for 4 different subsidiaries. The group provides that it has additionally lodged a proper police report with native authorities for the restoration of the lacking information, in addition to taken authorized motion towards Ms. Ju Li Li, an administrative officer of JES subsidiary Jiangsu Eastern Heavy Industries, for the unauthorized removing and possession of the delicate materials, similar to constitutional paperwork and the corporate seals of all of JES’ Chinese subsidiaries.

As far as JES’s proposed restructuring, the group says it’s within the technique of interesting the native Taizhou Court’s ruling to reject its proposed restructuring utility. A call on the enchantment is anticipated for November 2015, JES says.

Adding to the woes, JES can be combating allegations that the resignation letter from former CEO Jin Xin obtained in May was solid. The resignation letter cited well being points as Xin’s purpose for leaving.