Zhoushan Intermediate People’s Court said it has accepted a filing by Zhejiang Shipping Group regarding the bankruptcy of Wuzhou Shipyard, one of its subsidiaries.
The latest case makes Wuzhou Shipyard the first state-backed shipbuilder to go bankrupt, as China’s shipbuilding sector undergoes a severe recession.
The local court has frozen the assets of Wuzhou Shipyard, which has accumulated debts of approximately RMB911m ($140.3m).
Established in 2001, the Chinese yard started facing financial difficulties last year, according to a Caixin report citing a source.
At present, Wuzhou Shipyard has yet to complete the construction of four ships, including one 2,500 teu boxship, two barges and one tugboat. The yard last delivered a 2,500-teu boxship to Shanghai Zhonggu Xinliang Shipping on 17 July last year.
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