SYMS, th
e cash-strapped Chinese container line
which is formally Shandong Yantai International Marine Shipping was in negotiations between the intra-Asia operator and potential buyer Grand China Logistics.
These talks have now ground to a halt partly because of the money involved and partly because of regulatory issues.
Grand China Logistics, also known as Da Xin Hua Logistics, which is part-owned by the Hainan Airlines Group, had been the frontrunner to acquire SYMS. Talks have been going on for at least 10 months without result.
SYMS has been losing money for a long time, hit by the notoriously low freight rates in the China-Japan trades on which the line has concentrated.
SYMS has fallen badly behind on ship charter payments, and several owners have now taken legal action in an attempt to recover the money owed and their ships back.
The company’s outstanding debt stood at RMB500 million ($71m) in March this year when it invited investors to take a 90% stake in the business.
SYMS operates a fleet of 50 vessels totalling 440,000 dwt and 28,000 containers, and has been looking for a buyer since 2005. Prospects do not look pleasing.
Much more here ci-online and HERE.
Source: Lloyd’s List
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