Financially troubled ship design and shipbuilding company Shanghai Bestway Marine & Energy Technology has announced that a court in Shanghai has accepted a request from Shanghai Marine Equipment Research Institute (SMERI) to restructure the company.
SMERI, a CSIC unit, applied to restructure Shanghai Bestway in March last year due to the latter’s inability to repay debt.
Shanghai Bestway was hit by financial crisis and lawsuits against the company have been stacking up in the past year. The company’s subsidiary yard, Dajin Heavy Industry, was also facing difficulties to fulfil newbuilding contracts.
The court will appoint administrators to oversee the restructuring soon.
Shanghai Bestway said the restructuring would help the company improve its financial structure and solve its debt crisis if it is successfully implemented, but in the meantime the company is still facing the risk of bankruptcy and a stock delisting.
VesselsValue data shows that Dajin Heavy Industry’s orderbook has three 8,000 dwt bulkers ordered by Russian owner Aston and one liftboat ordered by Singapore’s Martens Marine.