DSIC Offshore, the bankrupt unit of state-backed Dalian Shipbuilding Industry (DSIC), has released a notice seeking new investors to restructure the company.
The company was declared bankrupt by a local court and entered into a restructuring process at the end of January at the request of creditors due to its inability to repay debts. Its liabilities as of the end of last year stood at close to $500m.
DSIC Offshore is one of the largest offshore yards in China and it was hit by the severe downturn in the offshore industry and suffered a series of contract cancellations.
According to DSIC Offshore, the yard has secured orders for a total of 38 offshore platforms and completed 23 of them since its inception in 2006 and now holds multiple offshore platform assets.
Last week, the central government of China officially launched an offshore asset management platform to manage the $30bn worth of idle offshore asset owned by state-run companies. Major state-run yards including CSSC, CSIC, Cosco Shipping Heavy Industry and China Merchants have all participated in the joint venture.