SUMEC Group, a machinery manufacturer based in Jiangsu, is going to take over bankrupt Yangzhou Dayang Shipbuilding via a new joint venture company.
Sources tell Splash that a new company called Yangzhou Binjiang Shipbuilding will take over Dayang Shipbuilding through a restructuring and Chen Herong, former general manager of Dayang Shipbuilding, has been appointed deputy general manager of Binjiang Shipbuilding.
According to the company registration files, Yangzhou Binjiang Shipbuilding was established this month and it is jointly owned by SUMEC Group and Yangzhou Bincheng Investment.
SUMEC is major creditor of Dayang Shipbuilding and collaborated with the yard for the construction of 10 bulkers. So far, seven of the ten vessels have been delivered, while the construction of the remaining three 82,000 dwt bulk carriers has been suspended.
Dayang Shipbuilding, a subsidiary yard of Sinopacific Shipbuilding, was declared bankrupt by a court in July 2017 due to a long standing debt crisis. The yard currently has around RMB4.55bn ($710m) of debts with creditors. The parent group of Sinopacific Shipbuilding, Evergreen Holding, is also in deep financial trouble with total liabilities amounting to nearly RMB7bn.