Chinese Court Orders Liquidation of STX Dalian
- Business & Finance
Intermediate People’s Court in Dalian has ordered STX (Dalian) Shipyard to enter bankruptcy liquidation on March 13, South Korea’s STX Corporation, the parent company of the bankrupt shipbuilder, said in a stock announcement.
Unable to pay off its debts within due dates, STX (Dalian) Shipbuilding, China’s biggest foreign-funded shipbuilder, filed for bankruptcy reorganisation across its six branches in June 2014, laying off 10,000 of its employees in the process.
As the reorganisation was unsuccessful, the court ordered bankruptcy liquidation, which will lead to the lay-off of the remaining employees at STX Dalian.
The analysts say that STX Dalian was a hard sale due to its CNY 20 billion (USD 3.2bn) in total liabilities.
Dalian Shipbuilding Industry Company (DSIC) had been rumoured to have acquired STX Dalian, but the purchase was denied by China Shipbuilding Industry Corporation, the parent company of DSIC.
World Maritime News Staff