New investors allocate $333m for Dayang Shipbuilding restructuring

New investors allocate $333m for Dayang Shipbuilding restructuring

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.

Jason Jiang

Jason is one of the most prolific writers on the diverse China shipping & logistics industry and his access to the major maritime players with business in China has proved an invaluable source of exclusives. Having been working at Asia Shipping Media since inception, Jason is the chief correspondent of Splash and associate editor of Maritime CEO magazine. Previously he had written for a host of titles including Supply Chain Asia, Cargo Facts and Air Cargo Week.

Related Posts