While China’s Nantong Mingde Heavy Industry has recently proceeded with rehabilitation procedure, it is expected that the Chinese shipbuilder will be acquired by compatriot builder Sainty Marine sooner or later.

Nantong Mingde is known as a leading yard in Chinese stainless chemical tanker field with 14 same-type of vessels on its orderbook. It was also listed in 'White-list' that the Chinese Government currently released, however the builder is said to have been at a critical moment due to the recent financial difficulties.

According to Chinese local press, Nantong Mingde failed not onely to repay matured debt but also secures insufficient assets. The People's Court of Nantong, Jiangsu, China, turns out to have accepted Sainty Marine's application of rehabilitation proceedings for the builder on December 27. Sainty Marine is the largest creditor of Nantong Mingde.

A related person conveyed that Sainty Marine is scheduled to take over Nantong Mingde through debt equity swap soon after its debt trouble is solved.

Sainty Marine requested the rehabilitation proceedings to carry out its right as the largest creditor of Nantong Mingde. However, it is said that manufacturing operations in its shipbuilding sector have normally been conducted.

The cash-strapped builder has marked constant deficits and had a lot of difficulties securing Refund Guarantee (R/G) amid the current slump in shipbuilding industry. It was barely capable of winning newbuildings without cooperation with Sainty Marine. Previously, both companies scored six woodchip carriers through internal cooperation in June last year and also jointly won seven 24,600 dwt chemical stainless chemical tankers in April this year.