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Shagang's demands for US$66 million in fees are ignored' by HNA

THE on-going dispute between Hong Kong's Shagang Shipping and the HNA Group is heating up after Shagang obtained a court order for the seizure of a second ship in HNA's charge, as it seeks US$58 million in unpaid charter fees.

The second HNA Group vessel, the GC Guangzhou, a 1999 built, 163,346 gross tonnes crude oil tanker, was seized at the Port of Gwangyang (Yeocheon) in South Korea.

It is the second time a ship under the control of the HNA Group has been detained within two weeks, a statement from Shagang Shipping said.

It said the latest ship seizure is part of a long-running legal battle seeking US$66.4 million plus interest from HNA Group.

The action is related to accusations that HNA is failing to honour its guarantee and comply with its contractual obligations with Shagang in connection with the 2008 hire of an earlier vessel, the Dong-A-Astrea.

To enforce various international court orders and arbitration awards, Shagang said it has already detained three ships, including the Bulk Peace twice, as well as the cruise ship Henna in September and now the GC Guangzhou twice.

Shagang obtained a winding up order against the HNA company, Grand China Shipping, and on March 7, was granted a subpoena from the Southern District Court of New York requiring seven US and Chinese banks affiliated to HNA to provide details of the group's financial transactions.

Shagang says it has been embroiled in a legal battle around the world seeking payment of the outstanding charter hire and fees from Grand China Shipping Hong Kong, and its guarantor HNA Group, which promised to step in and perform the charter if their subsidiary Grand China Shipping did not.

Said Shagang Shipping: "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."