Dalian: Dalian Intermediate Court held the first auction of the bankrupt STX Dalian yesterday, however the auction fell through due to there being no bidders.
According to relevant auction rules, the second auction price might be lowered by up to 20% if the first auction falls through.
STX Dalian officially went into a liquidation process in March and has total liabilities of RMB35bn ($5.65bn) with assets of the company valued at RMB5.8bn ($936m).
Some small creditors of STX Dalian protested in front of the court during the auction, complaining that it is almost impossible for them to get repaid due to the low auction price and debt redemption order.
A representative from a creditor company of STX Dalian told local media that he has heard the rumour that state-run Dalian Shipbuilding Industry Corporation (DSIC) might take over STX Dalian at the third auction at a very low price, as it is very likely that the second auction will also fail to attract a bid. An official from DSIC refused to make a comment on the matter when contacted by Splash. Were DSIC and STX Dalian to join forces, then in area size, the merged entity would be the world’s largest shipyard.
DSIC, part of China Shipbuilding Industry Co (CSIC), considered taking over STX Dalian in 2013 but the potential deal didn’t go through, as DSIC couldn’t handle the huge debts of the shipyard.