Dalian: Dalian Intermediate People’s Court has announced that it will auction the assets of shipbuilding group STX Dalian and its six subsidiaries on May 12, following the shipyard receiving a court ruling to liquidate in March.
The assets to be auctioned including shipbuilding facilities, land properties, projects under construction, vehicles and inventories. Total value of the assets is around RMB5.8bn ($936m).
STX Dalian applied with the court for a restructuring in May 2014, however, the court terminated the restructuring process on March 2015 as the yard had failed to send a restructuring plan to the court before the deadline due to a lack of potential investors.
Currently STX Dalian has debts of more than RMB24bn ($3.8bn) in total, with around 740 creditors and salary arrears of RMB480m ($76.6m) to 5426 employees.
Shanghai International Commodity Auction Co and Beijing Yatelan International Auction are the joint agencies for the auction. Bidders are required to pay a guarantee of RMB100m ($16.1m).