Zhejiang Ocean Shipping (Zosco), a major state-run dry bulk shipping company in Zhejiang, has been declared bankrupt by Hangzhou Intermediate People’s Court.
According to a court document Zhejiang Transportation Investment Group, the parent group of Zosco, applied with the court to liquidate the company due to debt issues.
So far, 14 major creditors of the company have declared around RMB10.9bn ($1.6bn) of debts in total, while the company’s total assets are worth just RMB5.1bn ($752m). The court will arrange the first creditor’s meeting soon.
Zosco recently put four capsize bulkers up for sale en bloc following the sale of two bulkers earlier in July. It currently has a fleet of ten bulkers.
Zosco’s sister company, Zhejiang Shipping, is also suffering from a debt crisis and Wenzhou Shipping, a subsidiary of Zhejiang Shipping, was declared bankrupt by a court last week.