Dalian Intermediate People’s Court has ruled to liquidate two subsidiaries of Dalian Shipbuilding Industry (DSIC) at the request of creditors due to their inability to repay debts.
Dalian Shipbuilding Industry Marine Services, the ship repair unit of DSIC, has entered liquidation as it was unable to repay debt totalling RMB15.49m while Dalian Shipbuilding Industry Steel Company, the ship recycling unit of DSIC, also went into insolvency due to its inability to repay RMB155m worth of loans.
Both the two companies are jointly owned by DSIC (67%), PIL (18%) and Anshan Iron & Steel (15%).
According to China State Shipbuilding Corporation (CSIC), the two companies account for only a small portion of the group’s business and the liquidations will have only a minor negative impact on the group’s business operations.
There have been three subsidiaries of DSIC, the flagship yard of CSIC, placed into insolvency in the past two months. At the end of January, DSIC Offshore also entered into court-led restructuring due to a debt crisis.