Court rules to liquidate Zhejiang Ouhua Shipbuilding

Court rules to liquidate Zhejiang Ouhua Shipbuilding

Zhoushan Intemediate People’s Court has officially ruled to liquidate Zhejiang Ouhua Shipbuilding after the shipyard applied for bankruptcy protection at the court in May.

The court has asked creditors of the yard to report debt to the bankruptcy managers of yard before August 11. The first creditor meeting is scheduled on August 24.

According to VesselsValue, Ouhua has unfinished orders for four containerships and six multipurpose vessels.

Chinese private shipyards have been struggling to survive the past few years. According to a report by Clarkson, the number of Chinese independent yards has deceased sharply from 305 to 50 since the start of 2009.

China is now readying to reopen a few shuttered yards. So far this year, three yards Dayang Shipbuilding, Qingdao Yangfan Shipbuilding and Jiangzhou Union Shipbuilding are expected to be rescued. Both Dayang and Yangfan have become state-controlled yards after their restructuring.

Earlier this month, Ouhua Shipbuilding joined the debt restructuring of China Ocean Industry’s affiliate yard Jiangxi Shipbuilding by taking 40% equity shares in China Ocean Hong Kong with RMB200m ($30m) outstanding debt owed by Jiangxi Shipbuilding to Ouhua.

Jason Jiang

Jason is one of the most prolific writers on the diverse China shipping & logistics industry and his access to the major maritime players with business in China has proved an invaluable source of exclusives. Having been working at Asia Shipping Media since inception, Jason is the chief correspondent of Splash and associate editor of Maritime CEO magazine. Previously he had written for a host of titles including Supply Chain Asia, Cargo Facts and Air Cargo Week.

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