Zhejiang Zhenghe Shipbuilding has filed for restructuring at a Chinese court because of operational difficulties resulting from financial problems.
On 31 March, the People’s Court of Dinghai District, Zhoushan Municipality, put on file the restructuring application by Zhenghe Shipbuilding, a statement of the shipyard said on 12 May.
Zhenghe Shipbuilding will enter an official restructuring process in due time, it added. The shipyard predicted that a complete restructuring plan will be published in three to five months.
Currently, the shipyard is gradually resuming production, with the operations and staff stabilised, Zhenghe Shipbuilding said.
According to IHS Maritime’s Sea-web.com, the yard’s orderbook consisted of nine bulk carriers, which are on order by China Huarong Financial, Seatankers Management, and Zhangjiagang Wan Peng Wood. The earliest delivery is scheduled in May for the 67,000 dwt He Rong.
Zhenghe Shipbuilding is wholly owned by Qingdao Zhenghe Shipping, according to China’s company registry system.
In addition, both Zhenghe Shipbuilding and Qingdao Zhenghe Shipping were sued by China CITIC Bank in November 2014 over loan disputes, according to court verdicts seen by IHS Maritime.