Sinopacific Offshore & Engineering placed into liquidation

Sinopacific Offshore & Engineering (SOE) has gone into liquidation following a decision by Jiangsu Qidong People’s Court in China, local reports said.

The court’s decision followed an application by creditor Shanghai Baosteel Pudong International Trade Co to liquidate SOE as it has been deemed no longer capable of repaying its debts.

The court revealed that it is handling close to 20 lawsuits against SOE over unpaid debts, the local media reported.

SOE is a subsidiary of financially troubled Sinopacific Shipbuilding Group, whose other subsidiary Zhejiang Shipyard has filed for bankruptcy in May this year. Another subsidiary Dayang Shipyard has ceased operations due to a lack of cashflow.

Sinopacific’s parent firm Evergreen Holding Group is also struggling after it defaulted on $61m of short term bond.

In June, CIMC Enric aborted its planned acquisition of SOE, citing that certain terms of the purchase deal cannot be fulfilled.

Posted 18 August 2016

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Lee Hong Liang

Asia Correspondent