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.