Major private shipbuilder China Ronsgsheng Heavy Industries Group looks like its fate is being forced upon it with upcoming government intervention.

The group had suspended its shares last month and flagged that a potential announcement relating to restructuring was imminent.Over the weekend, made a further announcement that it had been "notified by a government authority that they are procuring an independent third party to consider and, if appropriate, to initiate a potential restructuring involving Jiangsu Rongsheng Heavy Industries".

Jiangsu Rongsheng Heavy Industries is Rongsheng's main unit and derived some 89% and 91.4% of total revenue for FY2013 and the first half of this year respectively, from it. In the first half of 2014 Rongsheng reported a loss of $498.1m.

Rongsheng added: "The company does not currently possess any confirmed details on the potential restructuring, which might involve a restructuring of assets, business, debt and/or equity and might involve a dilution of its equity interest attributable to the group (which might or might not also affect whether Jiangsu Rongsheng Heavy Industries continues to be a subsidiary of the group)."

The company said it would update with any more information as it becomes available and shares would remain suspended until further notice.