On October 20, Bestway Marine & Energy Technology Co., Ltd. (hereinafter referred to as “Bestway Marine” or the “Company”) issued an announcement stating its intention to provide a counter-guarantee for letters of guarantee issued on behalf of its wholly-owned subsidiary, Jiangsu Dajin Heavy Industry Co., Ltd. (“Dajin Heavy Industry”), and to provide a guarantee for Dajin Heavy Industry’s application for comprehensive bank credit facilities.
The announcement discloses that Dajin Heavy Industry and Jiangsu New Yangchuan Maritime Development Co., Ltd. (New Yangchuan Maritime), acting as joint sellers, have signed a construction contract for one 6,600 DWT multi-purpose dry cargo vessel. In connection with this contract, Dajin Heavy Industry and New Yangchuan Maritime have entered into a cooperation agreement—along with other related agreements—for the construction of the 6,600 DWT multi-purpose dry cargo vessel (collectively referred to as the “main contract”).
Bestway Marine intends to provide New Yangchuan Maritime with counter-guarantees totaling no more than $6.469 million in connection with the performance bonds covered by the aforementioned main contract for Dajin Heavy Industry, and to sign a “Guarantee Agreement.” These counter-guarantees will take effect on a transaction-by-transaction basis according to the actual effective dates of the respective performance bonds.
Public records show that Jiangsu Dajin Heavy Industry was established in 2012 and has since become a wholly-owned subsidiary of Bestway Marine. The company is capable of building 30,000 DWT bulk carriers, container ships, product tankers, chemical tankers, multipurpose vessels, and wind turbine installation platforms, among others.