Chinese State-Run Dry Bulk Company Succumbs to Bankruptcy

by Ship & Bunker News Team
Monday October 31, 2016

Chinese dry bulk shipping company Zhejiang Ocean Shipping (Zosco) has been declared bankrupt by Hangzhou Intermediate People's Court, Chinese media reports.

The news comes after Zosco's principal, Zhejiang Transportation Investment Group (Zhejiang Transportation), in July applied to have the company liquidated, citing debt issues.

While the company's total assets are reported to be valued at RMB5.1 billion ($752 million), 14 major creditors are said to be claiming a total of approximately RMB10.9 billion ($1.6 billion).

Zosco, which sold two of it bulkers in July and currently has a fleet of ten, is said to have recently put a further four of its Capesize bulkers up for sale en bloc.

The court is said to be in the process of arranging an initial creditor's meeting.

Zosco's sister company, Zhejiang Shipping is also noted to be struggling financially, with its subsidiary, Wenzhou Shipping having recently been declared bankrupt.

As Ship & Bunker reported earlier this month, in the wake of the collapse of shipping major Hanjin Shipping Co Ltd (Hanjin), Hyundai Merchant Marine Co Ltd (HMM) said it is considering the submission of a preliminary bid for Hanjin's assets used on Asia-to-U.S. routes