Financially troubled shipbuilding group China Ocean Industry has entered into an agreement with the administrator of Zhejiang Ouhua Shipbuilding to settle their debt disputes.
Under the agreement, Ouhua agreed to withdraw two lawsuits against subsidiaries of China Ocean Industry after China Ocean Industry agreed to pay RMB8.11m ($1.13m) as settlement by October 31.
In the meantime, China Ocean Industry’s affiliate Zhoushan Investment Fund will revise the amount of two debt claims against Ouhua from RMB545m to RMB116m and RMB17.5m to RMB3.7m respectively.
Upon payment of the settlement amount and the revised debt amount to each other, all debts between the two parties will be discharged.
Zhejiang Ouhua went bankrupt earlier this year and was taken over by Zhoushan Changhong International Shipyard last month.
In August, Titan Petrochemicals filed a petition with High Court of Hong Kong to wind up China Ocean Industry.