Shanghai: Zhejiang Jingang Shipbuilding Co, the largest private shipbuilder in Taizhou in Zhejiang Province, has filed for bankruptcy. Moreover, there are many more Taizhou yards hovering on the brink, authorities warn.
"The company filed for bankruptcy in mid-June as it is unable to meet its debt obligations of over 300m yuan ($47.1m)," Yu Shengyue, director of No. 2 Civil Tribunal of the People's Court of Wenling county where the company is based, told Global Times, .â€¨
The major creditors include the local branches of Construction Bank of China, Agricultural Bank of China, Bank of China and Zhejiang Materials Industry Group Corp, a State-owned logistics company, according to Yu.â€¨â€¨
The Jingang shipyard is only one among many similar Zhejiang-based shipyards that have suspended business and dismissed employees due to the difficult market conditions. In June, Ningbo Hengfu Shipping Trade (Group) Co Ltd and Ningbo Beilun Sky Shipbuilding Co Ltd both filed motions to sell off assets.
"About 40% of over 100 ship companies in Taizhou did not receive any new orders last year, and most of them could hardly get through to the second half of the year," local media reported, citing Jin Linwen, secretary-general of the Taizhou Ship Industry Association. [28/06/12]