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.