Zhangzidao Struggles with High Debt Loads; Controlling Shareholder to sell Large Stake
SEAFOODNEWS.COM [Tetimes] Translated by Amy Zhong June 20, 2016
Zhangzidao is bringing strategic investors into the company to deal with a capital shortage. According to press reports, Zhangzidao has tried private placement three times from the June of 2014 to late 2015 without success. The company has also been caught in debt. Its debt ratio is as high as 79.75% according to its 2015 annual report. The short-term and long-term loans are 1.725 billion yuan and 1.191 billion yuan respectively, far exceed the average industry levels.
According to Zhangzidao’s announcement on June 6, the company has received a notice from its controlling shareholder, Changhai County Zhangzidao Investment & Development Center. The notice reads that the Center has inked a share transfer agreementl...
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