Two China shipyards went into bankruptcy
In the middle of October two Chinese shipyards: Nantong Qiya Ship Engineering Co., Ltd and Huigang shipbuilding went into bankruptcy procedure.
According to the report of 21 Century Finace Reporter, real estate of Qiya Ship Engineering company was first auctioned in September but failed. On October 21 the second try of auction was stopped by local court because of Qiya's assets deficiency.
Huigang shipyard is located in same town as Qiya ship engineering company. It once was the first private owned shipyard in Qidong city. Employees from Huigang shipyard said, they had not get their salary for three months.
Huigang shipyard has the loan from local bank of 1.4 hundred million RMB. The well-informed people said Huigang also has about 80 million loan from private companies for which they have to pay high interest. It is said there are two ship orders have been abandoned.
The marketing analyzer from East stock company said " 2011 year is still the hard time for all China private-owned shipyards because of the tight money policy and less orders."