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Hong Kong-based Shagang Shipping Co. Ltd. says it has successfully obtained an order for the arrest of the HNA Group Co. Ltd. controlled vessel MV Bulk Peace from the Western Australia District Registry.

According to Shagang Shipping, the move is part of a 'long-running legal campaign' seeking USD 66.4m from China's HNA Group, which the company says 'has failed to honour its guarantee and comply with its contractual obligations surrounding the 2008 hire of the vessel MV Dong-A Astrea'.

To enforce various international court orders and arbitration awards, Shagang Shipping says it has already successfully arrested three ships, including the same ship in India in March 2011 as well as the cruise ship MV Henna in September 2013; obtained a winding up order against Grand China Shipping (a Hong Kong-registered shipping subsidiary of HNA Group) and on 7 March 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.

In an emailed statement, an unnamed Shagang Shipping spokesperson is quoted as saying: "We are shinning a light on HNA and locating all of HNA's assets to enforce our claims. Whether these assets are heavily financed and backed by complicated leveraged transactions or not, we are examining them all closely. It is well reported that HNA relies on complicated lines of credit in order to aggressively expand and invest in aviation, shipping and hotels. But if HNA Group truly has unlimited access to such lines of credit we do not understand why they are going to such great lengths to avoid and delay honouring their contractual obligations to their business partners."

He added: "HNA Group has ignored court orders and walked away from negotiations. Shagang is aware that its various subsidiaries such as Grand China Logistics Holdings (Group), Grand China Shipping (Yantai), Grand China Shipping (Hong Kong) Company Limited (now in liquidation), Ocean Container Trading (Hong Kong) and others are being sued around the world. Legal actions such as arresting ships have so far proved the only way of forcing HNA to settle its debts, but the company is simply delaying the inevitable."

A High Court hearing in London is scheduled for February 9, 2015, the statement said.