In a notice sent to its employees, Dayang Shipbuilding informed that the company has been struggling in adverse operation environment and “bankruptcy is inevitable.”
The shipyard, which constructs mainly dry bulk carriers, said it has earlier applied to the local court to restructure its debts and the court has approved its case on Monday and appointed an official assignee to administer the bankruptcy affairs.
The company notice added that no workers are required to report to work and the management will compensate the workers in accordance to the local laws. The notice highlighted that the workers’ salaries for June and July will be paid by end-August.
“In the event that the company emerges from its bankruptcy, the company will prioritise the hiring of former workers,” Dayang Shipbuilding stated.
Dayang Shipbuilding was once well-known for its inhouse proprietary design series, namely the Crown58 59,000-dwt supramax, Crown65 63,500-dwt ultramax, Crown121 121,000-dwt mini-capesize, and Crown MHI82 82,000-dwt bulk carrier jointly designed by Sinopacific and Japan’s Mitsubishi Heavy Industries (MHI).
Troubles for Dayang Shipbuilding started in September 2015 when some of its subcontracted yard workers staged a protest over unpaid wages.
Privately-owned Sinopacific is not just witnessing the downfall of Dayang Shipbuilding, but also the shut down of its Shanghai ship design department in early last year and the bankruptcy of Sinopacific Offshore & Engineering (SOE).
Sinopacific’s other subsidiary Zhejiang Shipyard, which constructs offshore vessels, is continuing with a restructuring after it was declared bankrupt in April 2016.
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