Qingdao Yangfan Shipbuilding has successfully completed a long restructuring process, having gone into bankruptcy protection in October 2016.
State-run Huatong Group, which holds a 22% equity interest of Yangfan, proposed a new restructuring plan under which it will acquire the interest from Jianlong Group to gain full control. Jianlong Group decided to quit the restructuring of the shipyard in May after its proposed restructuring plan was strongly opposed by employees of the shipyard.
Yangfan has reached agreements with creditors by offering two debt repayment solutions, including repaying 70% of the debt amount in 12-month installments with the remaining 30% debt being exempted, or repaying the full amount of debt in a six-year installments.
According to Yangfan’s restructuring plan, it will quit large vessel construction and focus on high value-added ship types including offshore vessels, passenger roro vessels and research vessels.