Shenzhen-listed shipbuilder Jiangsu Sainty Marine Corp revealed that its restructuring has been approved by the Nanjing Intermediate People’s Court.
The shipbuilder now has until April 17 to compose a restructuring plan.
Jiangsu Sainty Marine added that it is contemplating to continue the shipyard’s business during the restructuring process.
If the company fails to accomplish its restructuring efforts, it will be forced to go bankrupt, and might face delisting from the Shangai stock exchange, according to Jiangsu Sainty Marine’s statement.
Sainty Marine has been struggling with financial hurdles over the past year which saw freezing of its assets by banks in addition to defaulting on its bank loans.
The troubled shipyard has been in a quest for fresh funds to avoid its financial issues as it tried to get back on track in mid 2015 when it put four newbuild 64,000 tons bulk carriers up for sale.
The decline in the bulk shipping market made the shipyard’s situation even worse as the prices of ships continued to deteriorate.
During 2015 the shipbuilder received cancellations of a number of newbuilding orders due to its inability to deliver the vessels on time.
World Maritime News Staff