Six affiliated companies of STX Dalian Shipbuilding, China's largest wholly foreign-funded shipbuilding company, are to start bankruptcy reorganization procedures, reports Xinhua, citing a court statement in Dalian City in northeast China's Liaoning Province.
STX Dalian Shipbuilding is the Chinese unit of STX Group, one of the world's top five enterprises in the shipbuilding industry.
The court indicated to Xinhua that, due to their inability to pay off their debts before the due date, the companies had filed a bankruptcy reorganization plan with the court.
Bankruptcy reorganization aims to help companies that are facing bankruptcy but still have value and hope to reemerge. Xinhau adds that the policy has been adopted by many countries.
STX Dalian Shipbuilding was established in 2007, with a registered capital of 1.125 billion U.S. dollars.