Yangzhou Dayang Shipbuilding, a subsidiary yard of Sinopacific Shipbuilding, has been declared bankrupt and started a liquidation process due to a long standing debt crisis.
In a notice Dayang Shipbuilding sent to its employees yesterday, the shipyard said it had been suffering from financial difficulties for a long time and the bankruptcy is inevitable. The shipyard has now suspended all operations and the receiver has started severance work for the employees.
Dayang Shipbuilding promised that it would hire the employees back as priority if the shipyard resumes operations in future.
Last year, Splash reported that SUMEC Group, a machinery manufacturer in Jiangsu as well as a major creditor of Dayang Shipbuilding was involved in a restructuring of Dayang Shipbuilding, however the deal has gone quiet since.
When contacted by Splash, an official at SUMEC Group said the receiver of the yard is currently working on the restructuring plan and there is no substantial progress so far.
In June, Sinopacific Offshore, another subsidiary yard of Sinopacific Shipbuilding, reached a new restrucuturing investment agreement with CIMC Enric. Under the agreement, CIMC Enric, as the restrucuturing investor, proposed to purchase the entire equity interest in Sinopacific Offshore for RMB799.9m ($117.58).