Dalian Shipyard Liquidates, Banks Take Hit

STX Dalian to be liquidated
STX Dalian Group, the bankrupt subsidiary shipyard of South Korea's STX Corporation, failed to complete bankruptcy reorganisation and has entered bankruptcy liquidation, Chinese media reported on 13 March.

Sources from STX (Dalian) Engine recently said that the reorganisation of six affiliated companies of STX Dalian has already confirmed to be a failure, and all current employees will be laid off.

Six branches of STX (Dalian) Shipbuilding, China's largest wholly foreign-funded shipbuilding company, started bankruptcy reorganisation procedures in June 2014, according to the announcement by local court.

The court stated that due to their inability to pay off their debts before the due date, the companies had filed a bankruptcy reorganisation plan with the court.

...Total liabilities of STX Dalian stands at around CNY20 billion (USD3.2 billion), which is too much for any company to acquire, Wang Hai, shipping expert from Ship.sh told IHS Maritime.

21 CBH:“200亿”债务吓跑接盘方 STX大连6公司破产殃及多家银行
According to "21st Century Business Herald" quoted sources said, in 2009, with China Construction Bank Dalian Branch as the lead bank, including Bank of China, Minsheng Transportation Finance Division, Dalian Bank, Shanghai Pudong Development Bank, Agricultural Bank of China and China Merchants Bank, 10 financial institutions, including syndicated, STX provides for ¥28.5 billion loan.

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