Shanghai: Judger Shipbuiding Co, a Wenzhou-based shipyard, is on the verge of bankruptcy due to abandoned orders and inability to repay loans.
Judger Shipbuilding was founded in 2004 and started operations in 2007 with a registered capital of RMB300m. Until now, the shipyard has built more than ten vessels including bulkers, oil tankers and chemical tankers.
Since last year, the shipyard has been struggling to get new orders due to the sluggish demand of the global shipping industry. This year, the shipyard suffered a further hit as two 82,000dwt bulkers, which were under construction at the yard were abandoned by a Hong Kong shipowner. Currently the shipyard has stopped construction of the two bulkers which are the largest tonnage vessels on its books.
According to an official from the company, the bank which provided financing for the order has asked Judger for RMB336m in compensation, and now Judger has also received notices of loan repayment from up to seven banks.
Currently Judger has filed a report to Wenzhou government and asked for financial support. “If there’s no further improvement on the situation, Judger might file for bankruptcy,” the official said. [05/12/12]
