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Judger’s debt-ridden shipbuilding subsidiaries hold creditors meeting

China’s Zhejiang Judger Shipbuilding and Wenzhou Yuandong Shipyard, both subsidiaries of Judger Group, have held a creditors meeting on Wednesday, as they entered into the restructuring phase, reports said.

Lee Hong Liang, Asia Correspondent

May 28, 2015

1 Min Read
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The two Chinese shipbuilding enterprises have applied to Wenzhou Intermediate Court in April to restructure its debts, spanning across 49 creditors demanding RMB1.2bn ($193.4m).

The 1996-established Judger Group, a large scale enterprise with businesses in clothing, properties, mining, ventured into the shipbuilding business in 2006. The group had believed that shipbuilding was a highly profitable business that can match or even surpass its clothing business.

In 2007, its shipbuilding construction officially started. But shortly after in late 2008, the global financial crisis hit, sending the shipbuilding industry into a severe recession. With the shipyard operations up and running, the group continued to build up the business and invested RMB1bn into this new venture by 2010.

When the shipbuilding industry displayed some signs of growth in 2010, Judger’s yards took in more new orders, but the burden of the highly capital intensive operation and lack of cashflow eventually brought its shipbuilding business to its knees.

About the Author

Lee Hong Liang

Asia Correspondent

Singapore-based Lee Hong Liang provides a significant boost to daily coverage of the Asian shipping markets, as well as bringing with him an in-depth specialist knowledge of the bunkering markets.

Throughout Hong Liang’s 14-year career as a maritime journalist, he has reported ‘live’ news from conferences, conducted one-on-one interviews with top officials, and had the ability to write hard news and featured stories.

 

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