Zhejiang Shipping in debt crisis

Zhejiang Shipping in debt crisis

Zhejiang Shipping Group has announced that two shipping subsidiaries of the group, Wenzhou Shipping and Taizhou Shipping, have overdue financial leasing repayments totalling RMB36.62m ($5.66m).

The two companies are also unable to repay another RMB4.41m ($682,000) financial leasing payments and RMB16m ($2.47m) in bank loans, which are due for payment by the end of April.

Zhejiang Shipping said the debt crisis is mainly caused by the depressed dry bulk shipping market.

According to the group, the two companies are currently in negotiations with creditors in an effort to solve the debt issue, however, they are still facing the risk of being liquidated if they cannot reach agreements with creditors.

Zhejiang Shipping Group liquidated its subsidiary shipyard Wuzhou Shipyard in December 2015 due to its huge debt burden, making it the first state-run shipyard to go bankrupt.

Jason Jiang

Jason is one of the most prolific writers on the diverse China shipping & logistics industry and his access to the major maritime players with business in China has proved an invaluable source of exclusives. Having been working at Asia Shipping Media since inception, Jason is the chief correspondent of Splash and associate editor of Maritime CEO magazine. Previously he had written for a host of titles including Supply Chain Asia, Cargo Facts and Air Cargo Week.

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