A Chinese government-backed shipbuilder Zhoushan Wuzhou Shipyard has been declared bankrupt by a local court in Zhejiang province, reports said.
Zhoushan Intermediate Peoples Court said it has accepted a filing by Zhejiang Shipping Group regarding the bankruptcy of Wuzhou Shipyard, one of its subsidiaries.
The latest case makes Wuzhou Shipyard the first state-backed shipbuilder to go bankrupt, as Chinas shipbuilding sector undergoes a severe recession.
The local court has frozen the assets of Wuzhou Shipyard, which has accumulated debts of approximately RMB911m ($140.3m).
Established in 2001, the Chinese yard started facing financial difficulties last year, according to a Caixin report citing a source.
At present, Wuzhou Shipyard has yet to …
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