Dalian Shipbuilding Industry Corporation (DSIC), a flagship yard of China Shipbuilding Industry, has announced that its affiliate company DSIC Changxing Island Ship Engineering has acquired entire assets of two bankrupt subsidiaries through auctions.
Dalian Shipbuilding Industry Marine Services, the ship repair unit of DSIC and Dalian Shipbuilding Industry Steel Company, the ship recycling unit of DSIC, were declared bankrupt by a Dalian court in 2019 at the request of creditors due to debt issues. Both the two companies were jointly owned by DSIC (67%), PIL (18%) and Anshan Iron & Steel (15%).
DSIC has bought back the assets of the two companies for a total price of RMB624m ($88m).
Registration information shows DSIC Changxing Island Ship Engineering was established in February, and the legal representative of the new unit Li Hongcheng used to serve same roles in the two bankrupt subsidiaries.
Following the completion of the deals, the financial performance of the two subsidiaries will not be included in the balance sheet of the listed platform of CSIC anymore.
DSIC Offshore, the offshore unit of DSIC, also entered debt restructuring last year and later in the year the central government of China launched an offshore asset management platform SinoOcean to manage the idle offshore assets owned by state-run companies. The new group was jointly established by seven shareholders including major shipbuilding groups CSSC, CSIC, Cosco Shipping Heavy Industry and China Merchants.