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ICBC Officially Signed Debt Restructuring Agreement with China Changjiang National Shipping Group

ICBC Officially Signed Debt Restructuring Agreement with China Changjiang National Shipping Group

Write: Herold [2011-05-20]

ICBC Officially Signed Debt Restructuring Agreement with China Changjiang National Shipping Group

Recently, ICBC and China Changjiang National Shipping Group officially signed Debt Restructuring Agreement, Debt-to-Equity Agreement, China Changjiang National Shipping Co. Ltd. Regulations and Full Cooperation Agreement in Wuhan. The cooperation created a precedent for having mainland commercial bank directly hold the majority shares of a corporation. Mr. Jiang Jianqing, chairman of board of ICBC, attended the signing ceremony and delivered a speech.

China Changjiang National Shipping Group is the largest shipping company in domestic inland river. Its wholly-owned subsidiaries and holding branches are located along the Yangtze River and all coastal harbors. And it has a network of branch offices in US, Germany, Japan, Singapore, Australia, Korea and Indonesia.

China Changjiang National Shipping Group was ranked 169th in the recent "China Top 500". Since 1999, ICBC and China Changjiang National Shipping have started discussions on debt issue. The two parties finally reached consensus after hard efforts of more than 6 years. In April this year, State Council officially approved the debt restructuring proposal of China Changjiang National Shipping.

Implementation of the proposal laid a solid foundation for the cooperation between ICBC and Changjiang National Shipping. This will help Changjiang National Shipping to allay its burden on debt interests, lower its assets liability ratio and optimize its capital structure so that the group will have more stable profitability and developing strength.

It also helps ICBC become a modern banking enterprise and speed up its listing process. It is a double-win situation for both the bank and enterprise.

Mr. Yu Zhengsheng, Member of Political Bureau of the CPC Central Committee and Secretary of Hubei Party Committee, Mr. Luo Qingquan, Governor of Hubei Province, Mr. Zhou Jianwei, Standing Vice Governor of Hubei Province, Mr. Sun Zhigang, Standing Member of Hubei Party Committee and General Secretary, and Mr. Ruan Chengfa, Vice Governor of Hubei Province attended the signing ceremony.