Jianlong Group, the controlling shareholder of bankrupt Qingdao Yangfan Shipbuilding, has proposed a restructuring plan to rescue the yard.
Under the plan, Jianlong Group will offer RMB3.8bn ($580m) to solve the debt issues of the shipyard and diversify business at the shipyard to include non-shipbuilding activities.
Jianlong Group currently holds a 78% stake in the shipyard and it also plans to take over the remaining 22% stake from state-owned Huatong Group.
Creditors represent more than half of Qingdao Yangfan’s debt have approved the restructuring plan in a preliminary vote.
In September, over 300 employees of Qingdao Yangfan protested against Jianlong Group claiming it hadn’t delivered on its promises to solve the issue of unpaid salaries since the shipyard was declared bankrupt.