Chinese shipyard declares bankruptcy

Shandong Huahai Shipbuilding, a small shipbuilding company based in Rizhao, Shandong, will now be liquidated after an application from its primary creditor was accepted by the Rizhao Intermediate People’s Court.    Shandong Huahai Shipbuilding, a small Chinese shipyard based in Rizhao, Shandong, has been declared bankrupt by the Rizhao Intermediate People’s Court, according to multiple media reports.
   The court accepted an application from Shandong Huahai’s largest creditor, Shandong Jintou Energy, to liquidate the shipbuilding company.
   Established in 2007 by Shandong Haiyue Import & Export Company, Tianjin Wanbao International Trade Company, Rizhao Shipyard and Singapore’s Raffles Shipping International, Shandong Huahai has been struggling financially since 2014. Some assets have already been sold or auctioned off, including the 2014 auction of a 36,000-dwt multi-purpose cargo vessel under construction at Huahai for Yantai Pacific Offshore by the Qingdao Maritime Court.
   Shandong Huahai Shipbuildingis scheduled to hold its first meeting with creditors regarding the bankruptcy proceedings Oct. 29.
   It is the fourth major shipyard in Shandong to declare bankruptcy since 2014, joining Weihai Samjin Shipbuilding, Rushan Shipbuilding and Rongcheng Shenfei Shipbuilding, according to maritime news outlet Splash 24/7.