Sainty Marine quits shipbuilding business

Sainty MarineThe bankrupted Sainty Marine completed the restructuring and abandoned shipbuilding business. According to the plan, the company issued 2.3 billion new shares and raised 3.2 billion USD for the acquisitions of a series of power and trust assets owned by its parent Jiangsu Guoxin Group. According to the restructuring plan the company will leave the shipbuilding business and will change its stock name to Jiangsu Guoxin Corp. The company’s debt reached 1.2 billion USD before applying for bankruptcy and will be covered by the liquidation of the shipyard, as well as raised funds by the company.

Sainty Marine is trying to dispose of all its shipbuilding assets, but all the three auctions failed due to there being no bidders. After the failed attempts for offloading the business, the company will proceed with liquidation of the shipyard.

Sainty Marine Corp Ltd has become China’s first listed company to apply for bankruptcy and reorganization, after it said it had been hit hard by the slowing global shipbuilding industry.

Sainty Marine was established in 2007 and is a subsidiary of Jiangsu Guoxin Investment Group Ltd, a State-owned company that manages government-authorized assets. It floated on Shenzhen Stock Exchange in 2011.