Sainty Marine thrown out from restructuring of Mingde Heavy Industry

Sainty Marine thrown out from restructuring of Mingde Heavy Industry

Shanghai: Debt-ridden shipbuilder Sainty Marine has been thrown out from the restructuring of Nantong Mingde Heavy Industry due to its own poor financial condition.

In an official announcement, Sainty Marine said the receiver of Mingde reckoned that the difficult financial conditions surrounding Sainty Marine meant that the company could no longer support the restructuring of Mingde. The receiver has also decided to revoke Sainty Marine’s management rights at the yard during the restructuring, and terminate its qualification as a potential investor.

The decision follows Sainty Marine’s announcement yesterday that the receiver of Mingde couldn’t submit a restructuring plan to the court within given time limit.

Sainty Marine had earlier warned that it is facing the risk of not being able to fulfil some of the 32 newbuild contracts it has being built at Mingde Heavy Industry due to the ongoing restructuring of the yard, and it might face up to RMB2.94bn ($473m) in losses if the restructuring fails.

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.

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