Wuhan Guoyu Logistics has suspended operations and moved out from its office building following the recent operational suspension at its subsidiary yard Yangzhou Guoyu Shipbuilding.
Yangzhou Guoyu Shipbuilding suspended its operations in May due to financial difficulties and started to lay off employees in order to downsize and cut costs.
According to a source close to the group, most of the Guoyu Logistics’ assets have been pledged to the banks and it has been unable to secure new loans even with the local government’s coordination, mostly down to the fact that previous loans haven’t been paid off.
Guoyu Logistics Group also has two bonds worth a total of RMB600m ($91m) expiring in August and October. “It is almost impossible for the group to make the bond repayment unless it has a new investor,” the source said.
Guoyu Shipping, the shipowning arm of Guoyu Logistics Group, offloaded its last two ships and exited shipowing in April.