Zhejiang Shipping Group, a major state run shipping firm controlled by Zhejiang Communications Investment Group, is very likely to start a debt restructuring this year amid the doldrums in the dry bulk shipping market, a source at the company told Splash.
“The company has been suffering losses for four consecutive years. Considering the current situation, it is very difficult to return to profit this year,” the source said.
The group announced yesterday that two shipping subsidiaries of the group, Wenzhou Shipping and Taizhou Shipping, have overdue financial leasing repayments totalling RMB36.62m ($5.66m), and they are also unable to repay an RMB4.41m ($682,000) financial leasing payment and RMB16m ($2.47m) in bank loan repayments which are due for payment by the end of April.
Zhejiang Shipping currently controls a fleet of 47 vessels with total capacity of 1.67m dwt and has liabilities of about RMB8bn ($1.23bn).
Zhejiang Ocean Shipping, another major shipping unit of Zhejiang Communications Investment Group, is also suffering from huge losses. The company currently has liabilities of about RMB6bn ($926m).
