Shanghai: Debt-ridden shipbuilder Sainty Marine, which is currently restructuring the bankrupt Nantong Mingde Heavy Industry (Mingde) as the largest creditor, has announced that the receiver of Mingde couldn’t submit a restructuring plan to the court within given time limit.
Nantong People’s Court accepted Sainty Marine’s application to restructure Mingde in December 26, 2014. According to Chinese bankruptcy law, the receiver should submit a draft of the restructuring plan within six months. However, the receiver of Mingde has failed to do so.
Sainty Marine said it hasn’t receiver any notice from the receiver of Mingde regarding the delay of the restructuring, and is currently in negotiations with the receiver.
Sainty Marine had earlier warned that it is facing the risk of not being able to fulfil some of the 32 newbuild contracts it has being built at Mingde Heavy Industry due to the ongoing restructuring of the yard, and it might face up to RMB2.94bn ($473m) in losses if the restructuring fails.