SUMEC Group, a state run machinery manufacturer based in Jiangsu, has announced that the company and Yangzhou Yunhe Xincheng Construction have entered into an restructuring agreement with Dayang Shipbuilding, the bankrupt subsidiary yard of Sinopacific Shipbuilding.
Last month, SUMEC Group confirmed that it would join the restructuring of the yard.
Under the agreement, SUMEC and Yunhe Xincheng will jointly provide RMB2.285bn ($333m) funding to support the restructuring of Dayang Shipbuilding. After the fund injection, SUMEC and its affiliate company SUMEC Marine will occupy 45% and 40% equity shares in Dayang respectively, while the remaining 15% will be held by Yunhe Xincheng.
The restructuring plan is still subject to approval by a local court.
Dayang Shipbuilding was declared bankrupt in July last year due to a long standing debt crisis. The yard currently has around $710m debts with creditors.