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.
