Shenzhen-listed Sainty Marine said it has objected to a liquidation plan for defunct Nantong Mingde Heavy Industry (NMHI), which was given by the yard’s receiver.
Sainty Marine forwarded its decision to the receiver on 25 September, a stock filing of the company said.
If the plan could not be approved by all the creditors of NMHI, a local court in Nantong would rule on the plan.
On 31 July, NMHI was declared bankrupt by a court in Nantong, China, as NMHI’s receiver could not find potential investors to continue with the yard’s restructuring. NMHI went into court receivership since Sainty Marine applied for the bankruptcy restructuring of NMHI in December 2014.
As of end of 2014, Sainty Marine provided NMHI with a net total of CNY2.5 billion (USD403.2 million) to finance the newbuildings under construction at NMHI, making Sainty Marine the single largest creditor of the Nantong yard.
Sainty Marine found by the end of 2014 that NMHI was unable to repay the funds as the company had predicted.
From early 2013 to March 2015, Sainty Marine and NMHI have teamed up to win new orders for a total of 36 vessels including wood chip carriers, platform supply vessels (PSVs), stainless steel chemical tankers, bulk carriers, and barges.
Among the 36 vessels, Sainty Marine lost all orders for 14 stainless steel chemical tankers placed by Celsius Shipping, which were planned to be built at NMHI, in June. Two PSVs and a bulk carrier had already been abandoned by their respective owners, with another two Ultramaxes cancelled by Sainty Marine itself.
Four wood chip carriers had been delivered to Singapore-based Nova Shipping & Logistics Group. Two barges and two Handysize bulkers had also been delivered, according to prior stock filings of Sainty Marine.