STX Dalian gets acceptance from court to restructure

Dalian: STX Dalian Group has had its application accepted for court receivership with Dalian Medium People’s Court and has started restructuring procedures.

According to a supplier company of STX Dalian, it has received a notice from the court requesting it provide debt information.

The court and creditors of STX Dalian will now establish a group to discuss the debt issues of the company and make efforts to help the company resume normal operations.

“The process will take about one year, if it is not successful, STX Dalian will go bankrupt,” a local lawyer told SinoShip News.

According to an official from a creditor bank of STX Dalian, the company had applied for bankruptcy with the Chinese court several times, but the requests had been turned down by the local government. STX Dalian said it will compensate employees’ salary and relevant welfare first if the restructuring plan is approved by the court.

State-owned Dalian Shipbuilding Industry Corporation had made an attempt to take over previously, however it withdrew the offer due to the huge debts of the yard. [27/05/14]

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