Shanghai: Bankrupt Nantong Mingde Heavy Industry, which is currently in the process of restructuring, is looking for new investors following Sainty Marine being thrown out from the restructuring due to its own poor financial condition.
Sainty Marine applied for the restructuring of Mingde in December 2014 as its largest creditor, but was thrown out from the restructuring by the receiver of Mingde last week. The receiver reckoned that the difficult financial conditions surrounding Sainty Marine meant that the company could no longer support the restructuring of Mingde.
The receiver has applied with the court to extend the time limit for the restructuring as it wasn’t able to submit a restructuring plan in the given time limit.
The new potential investor is required to pay a fund guarantee of RMB100m ($16.1m) to join the restructuring. The receiver hopes to find the investor before July 30.
Mingde Heavy Industry is a leading shipbuilder for chemical tankers, and has suffered a series of cancellations due to the ongoing restructuring of the yard.