Wuzhou Shipyard becomes first state-run shipyard to go bust

2015-12-31

Zhoushan Intimidate People’s Court has announced that it has accepted an application from Zhejiang Shipping Group to liquidate its shipyard subsidiary Wuzhou Shipyard, making it the first state-run shipyard to go bankrupt.

Zhejiang Shipping Group said a huge debt burden is the main reason for the shipyard’s bankruptcy with debts of RMB911m ($140m) in total.

Wuzhou Shipyard suspended operations after it delivered a 2,500teu containership to Shanghai Zhonggu Xinliang Shipping in July this year. It also has one 2,500teu containership, two barges and one tugboat which remain undelivered.

The court will appoint a receiver for the shipyard and organise a creditor’s meeting soon.

Source from : Splash

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