Bankrupt Qingdao Yangfan Shipbuilding has filed an application with a court in Qingdao, requesting to change the bankruptcy administrator of the shipyard, as it believes the administrator is working against regulations in the restructuring process and has interests associated with its controlling shareholder Jianlong Group who recently proposed a restructuring plan for Yangfan Shipbuilding.
According to Yangfan’s application filed to the court, the administrator didn’t discuss the matter of bringing in Jianlong Group as restructuring investor with the shipyard and didn’t give voting rights to the shipyard employees.
Jianlong Group’s recently proposed restructuring plan includes offering RMB3.8bn ($580m) to solve the debt issues of the shipyard and taking over the remaining 22% stake of the shipyard from Huatong Group. Creditors represent more than half of the shipyard’s debt have approved the plan in a preliminary vote.
However, employees of Yangfan sent an open letter to the president of Jianlong Group, making clear they will resist the group as restructuring investor and asked it to give up on its plans.
After receiving the application from the shipyard, Qingdao Intermediate People’s Court has announced to postpone the approval of the restructuring plan until further notice.