Zhejiang Shipbuilding, a bankrupt subsidiary yard of Sinopafic Shipbuilding, has submitted a draft plan for restructuring to a local court.
The shipyard was declared bankrupt by the court in April 2016.
According to the plan, Zhejiang Shipbuilding will repay every single debt below RMB200,000 ($29,100) and repay 4% of above the amount in cash. The fund to be used to repay debt will mostly come from selling assets including ships currently under construction at the yard.
Zhejiang Shipbuilding said it has been actively negotiating with shipowners and making efforts to complete all unfinished shipbuilding projects. After going into bankruptcy proctection process in April, the shipyard delivered one AHTS to Vallianz in September and a subsea rock installation vessel to Van Oord in December.
Zhejiang Shipbuilding has applied for a period of 18 months for the restructuring. In the meantime, it is still seeking new investors.