The restructuring of Nantong Mingde Heavy Industry (NMHI) is uncertain as the company has failed to deliver a restructuring plan to its receiver Sainty Marine as scheduled.
As of end of June, Shenzhen-listed Sainty Marine in its stock filing on 8 July said it had not received a restructuring plan of NMHI although it was scheduled to be delivered by 26 June.
Sainty Marine is the single largest creditor of NMHI and seeks to take over the insolvent yard.
NMHI has entered into court receivership since Sainty Marine applied for the bankruptcy restructuring of NMHI in December 2014.
Related news: Sainty Marine pays back $3.7m in overdue debts
Sainty Marine has been in co-operation with NMHI to sell newbuilds by NMHI since 2013. As of end of 2014, Sainty Marine provided NMHI with a total of net CNY2.5 billion (USD402.6 million) to finance the buildings of the newbuildings under construction at NMHI, making Sainty Marine the single largest creditor of the Nantong yard.
By the end of 2014 Sainty Marine found that NMHI was unable to repay the funds as the company had predicted.
Sainty Marine will also try to expand its channels of financings to resolve the loan defaults.