Zhoushan Intimidate People’s Court has announced that it has accepted an application from Zhejiang Shipping Group to liquidate its shipyard subsidiary Wuzhou Shipyard, making it the first state-run shipyard to go bankrupt.
Zhejiang Shipping Group said a huge debt burden is the main reason for the shipyard’s bankruptcy with debts of RMB911m ($140m) in total.
Wuzhou Shipyard suspended operations after it delivered a 2,500teu containership to Shanghai Zhonggu Xinliang Shipping in July this year. It also has one 2,500teu containership, two barges and one tugboat which remain undelivered.
The court will appoint a receiver for the shipyard and organise a creditor’s meeting soon.