Shanghai: Bankrupt Wenzhou-based private shipyard Judger Shipbuilding held its first creditors’ meeting yesterday, after the shipyard filed for bankruptcy restructuring with Wenzhou Intermediate People’s Court in April.
Creditors of Judger Shipbuilding and its fully controlled subsidiary Wenzhou Far East Ship have reported debts of RMB1.924bn ($310.3m) in total.
The receiver of the shipyard has proposed to merge Judger Shipbuilding and Wenzhou Far East Ship in order to lower costs and enhance the efficiency of the restructuring. The creditors are currently considering the proposal and will initiate a vote on it.
Zhejiang Judger Group, a multi-sector group primarily engaged in the clothing business, established Judger Shipbuilding in 2006 to diversify its business however the shipyard has been suffering financial difficulties since Hong Kong owner Parakou Shipping abandoned two bulkers at the yard.