Wuhan Guoyu Logistics, the parent group of Guoyu Shipbuiding, Wuhan Jiangyu Ocean Shipping Development and Wuhan Jingwei LPG Shipping, has reported that the defaulted amount on its bank loan has increased by RMB211m to RMB663m ($105m) in the past four months. In the meantime, the group has eight ongoing lawsuits with creditors.
According to Guoyu Logistics, the group’s total liabilities has grown to RMB4.13bn, an asset-liability ratio of 264.78%.
Guoyu Logistics Group was hit by a financial crisis in 2016 and defaulted on bond payments, and went on to exit shipowning by selling the last two bulkers in its fleet while subsidiary yard Yangzhou Guoyu Shipbuilding suspended all operations.
Currently most of the group’s assets have been pledged to the banks, and the Wuhan local government has made attempts to seek new investors for the group but hasn’t made any progress so far.