A local court in Nantong has ruled to liquidate the assets of Nantong Dongxin Shipbuilding, at the request of a major creditor of the yard.
Dongxin Shipbuilding was established in 2008 and mainly builds bulk carriers. It has been suffering from debt issues and suspended operations in December 2013. Wuxi Xiexing Port Machinery applied with the court to liquidate the shipyard in December 2014. The shipyard still has outstanding shipbuilding projects for six bulk carriers, which were scheduled for delivery in 2016 and 2017.
Currently the creditors of Dongxin have passed proposals for the disposal of the company’s assets and resettlement of employees of the shipyard.