Bankrupt Chinese domestic dry bulk shipping company Deqin Group has reached a restructuring agreement with investment company Shanghai Eqiao Group.
Deqin Group has been suffering from a financial crisis for the past few years and the company released a notice in April to sell all its assets including 19 bulk carriers with total capacity of around 445,400 dwt, land properties and its office building. All the proceeds from the sale will be used for debt repayment.
Under the agreement, Shanghai Eqiao has agreed to acquire all 19 vessels from Deqin’s fleet for RMB453.5m ($68m) and will also invest further RMB80m to set up a new shipping company in Zhoushan bringing with it all the employees from Deqin Group.
The restructuring plan has already been approved by a Zhoushan court and the company’s creditors. The court has given the company a period of 12 months to complete the restructuring.