Evergreen Holding, the parent group of Sinopacific Shipbuilding has announced that it has been unable to make a bond payment of RMB540m ($85.7m) due on April 24 due to an ongoing financial crisis.
In January, the company was sued by China Development Bank Securities for debt repayment default.
The company is facing liquidation with total liabilities amounting to nearly RMB7bn ($1.1bn), and most assets owned by Evergreen Holding have been frozen by courts at request of creditors.
Two subsidiary yards of Evergreen Holding, Zhejiang Shipbuilding and Yangzhou Dayang Shipbuilding, went into bankruptcy restructuring process while another affiliate yard Sinopacific Offshore was sold to CIMC Enric in 2017.
In 2017, Shanghai Stock Exchange openly denounced Liang Xiaolei, general manager of Evergreen Holding and Liang Guangfu, president of Evergreen Holding, for their negative attitudes when dealing with the bond defaults.