Jiangsu Qidong People’s Court has approved the liquidation of Sinopacific Offshore & Engineering, a subsidiary yard of Sinopacific Shipbuilding.
The liquidation was applied for by Shanghai Baosteel Pudong International Trade Company, a creditor of the yard.
The court said it is currently handling more than 20 debt related lawsuits against Sinopacific Offshore.
This is the second Sinopacific yard now in liquidation after Zhejiang Shipbuilding.
In June, CIMC Enric, an affiliate company of China International Marine Containers (CIMC), terminated the acquisitions of Sinopacific Offshore & Engineering as it stated that the parent company of Sinopacific Offshore had breached certain material terms in the agreement. It also terminated a financial assistance framework agreement with Sinopacific Shipbuilding and Evergreen Holding.
Sinopacific Shipbuilding is currently dealing with a financial crisis and closed its Shanghai operations earlier this year. Its parent group Evergreen Holding is also struggling and defaulted on bond payments recently.
