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China’s government-backed Wuzhou Shipyard declared bankrupt

China’s government-backed Wuzhou Shipyard declared bankrupt
A Chinese government-backed shipbuilder Zhoushan Wuzhou Shipyard has been declared bankrupt by a local court in Zhejiang province, reports said.

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.