Debt crisis at Guoyu Logistics worsens

Debt crisis at Guoyu Logistics worsens

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.

Jason Jiang

Jason worked for a number of logistics firms following his English degree, then switched this hands-on experience to writing and has since become one the most prolific writers on the diverse China logistics industry writing for a host of titles including Supply Chain Asia, Cargo Facts and Air Cargo Week. Jason’s access to the biggest shippers with business in China has proved an invaluable source of exclusives.

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