Another HNA Group ship arrested by Shagang Shipping in the last 2 weeks

By Finance

The Hong Kong based company Shagang Shipping continues with the arrests of vessels owned by the HNA Group. Shagang has received an order (28 March 2014) a few days ago for the arrest of the 163,346 GT crude oil tanker M/V 'GC Guangzhou' at the Port of Gwangyang (Yeocheon) in South Korea. This has been a second attempt of the Hong Kong shipping company to legally take control of HNA Group owned vessel in the last two weeks. 

On 20th of March this year, Shagang Shipping arrested MV Bulk Peace, but an Australian judge ordered the vessel to be released due to insufficient evidence that HNA Group was the vessel’s beneficial owner. The Hong Kong based company continues its legal campaign against HNA Group, seeking USD$66.4m plus interest. The two shipping companies signed a contract for hire in 2008 for the vessel M/V Dong-A-Astrea. Shagang Shipping claims that the HNA Group paid only for the first 5 months in accordance with the signed contract. 

The Hong Kong based company has arrested so far 3 vessels according to international court orders and arbitration awards. MV Bulk Peace was arrested 2 times, MV "Henna" was arrested in September 2013 and now another ship is under the control of Shagang, the M/V 'GC Guangzhou' (arrested also two times).

A representative of Shagang Shipping said:

"We will continue to send a clear message to HNA, and specifically its investors and stock holders that we intend to enforce our claims by locating all of HNA's assets wherever and whenever we can across the globe to obtain further arrests.

We remain baffled as to why HNA Group as guarantor does not simply honour its debts to us. If HNA Group is, as reported, aggressively expanding into other areas and has significant lines of credit then we do not understand why they are delaying paying their debts. Investors need to ask some pertinent questions of the Group." 

He informed also that arresting ships was the only way to force HNA to take responsibility about its debts. Shagang Shipping will not stop the legal actions against HNA Group. 

Related news:

Shagang Shipping arrests HNA vessel MV Bulk Peace in Australia