Mingde Heavy is Bankrupt

 

A  a request by Mingde to extend the submission of its restructuring plan, after it lapsed on 25 June, was not successful. Hence, Mingde itself applied for bankruptcy.

 

Mingde was a leading shipyard for chemical tankers. Due to its financial difficulties Mingde was unable to receive bank guarantees, and had to team up with Shenzhen-listed  Sainty Marine on new orders.

 

Sainty Marine had applied to help restructure Mingde via a debt-for-equity rescue deal. But the rescue plan failed to make any progress as Sainty Marine is itself mired in financial troubles.

 

Currently Sainty Marine is also suffering from a financial crisis, it is trying to sell four already completed 64,000dwt bulkers to offset some debts. 

 

Mingde held on to its last hopes as the company announced in mid-July that it sought new investors to turn the company around, setting a timeline of until 30 July to receive interests from investors.

 

Last week, Boa PSV AS, a 100 % owned subsidiary in the Boa Offshore group, has cancelled the shipbuilding contracts for two multi-purpose support vessels (MPSVs) with Nantong Mingde.