According to the news of Ningbo DCL Investments, recently, the large-scale distressed assets reorganization merger and acquisition fund managed by DCL Investments has successfully led the bankruptcy reorganization of Yangzhou Guoyu Shipbuilding, and formally became its controlling shareholder.
It is understood that due to the former shareholders being in debt crisis and unable to repay the debts on time, Yangzhou Guoyu Shipbuilding applied for bankruptcy and liquidation to Yizheng Municipal People’s Court on September 6, 2021 on the ground of inability to settle the debts.
The court ascertained that the total liabilities of Yangzhou Guoyu Shipbuilding amounted to approximately RMB2.6 billion. The court considered that the shipyard owed a huge amount of due debts which it failed to settle and obviously lacked the ability to settle, and ruled that the application for bankruptcy and liquidation of it should be accepted on November 2, 2021. On May 20, 2022, the Yizheng Municipal People’s Court appointed a liquidation group to act as administrator.
Thereafter, the Liquidation Administrator conducted a public tender offer for the sites, facilities and real assets of Yangzhou Guoyu Shipbuilding and issued a Provisional Lease Agreement in May 2023. According to the agreement, Ningbo Hongzhi Investment Partnership Enterprise successfully bid for the 12-month temporary lease right of Yangzhou Guoyu Shipbuilding related assets after public bidding with a quotation of RMB 16.25 million, and invested RMB 50 million to set up Jiangsu Hongzhi Shipbuilding Equipment Manufacturing Co Ltd as the operating body.
Public information shows that Yangzhou Guoyu Shipbuilding was established in June 18, 2005, originally belongs to Wuhan Guoyu Logistics Industry Group subordinate holding subsidiary, with a registered capital of 600 million yuan.
The shipyard is located in Yizheng Economic Development Zone of Yangzhou City, Jiangsu Province, covering an area of about 1,848 mu, with a perennial water depth of more than 13 meters and good water conditions; it has two 50,000-ton slipways, one 70,000-ton slipway and one 100,000-ton slipway, with a maximum lifting capacity of 800 tons; The outfitting wharves on the east and west coasts can berth 50,000-ton ships and outfitting operations for ships of up to 300,000 tons respectively. It can build all kinds of ships such as cargo ships, oil tankers and chemical tankers of 100,000 tons and below, with an annual production capacity of up to 2 million tons.
DCL Investments stated that it highly recognizes Yangzhou Guoyu Shipbuilding’s relatively scarce shipbuilding resource endowment, which, combined with the persistently high demand for shipbuilding at this stage, is expected to usher in a period of sustained upturn in the company’s business, and therefore the company decided to participate in the investment in the bankruptcy reorganization of Yangzhou Guoyu Shipbuilding.
In July 2024, the reorganization plan of Yangzhou Guoyu Shipbuilding was passed by the creditors’ meeting with a high vote and approved by the court, marking that DCL Investments will formally hold Yangzhou Guoyu Shipbuilding. The investment in Yangzhou Guoyu Shipbuilding is the first time that DCL Investments holds high-quality large-scale shipyard assets along the river, and the landing of the project marks the further extension of DCL Investments’ investment extension in the shipping and logistics sector.
DCL Investments stated that after the acquisition is completed, the company will continue to focus on Yangzhou Guoyu Shipbuilding’s main business of shipbuilding, and will equip the shipyard with an experienced management and operation team, upgrade the supporting facilities, expedite the resumption of full-scale operation and production, and gradually transform into the construction of high-value-added vessels.
At the same time, DCL Investments will integrate its industrial and financial resources to match Yangzhou Guoyu Shipbuilding with high quality shipbuilding orders to increase its shipbuilding output. Looking ahead, DCL Investments will work together with industry leaders to build Yangzhou Guoyu Shipbuilding into a first-class shipyard in China and an internationally renowned shipbuilder, contributing to the development of the local economy and the creation of new jobs.
Since its inception in 2015, DCL Investments has been firmly focused on distressed asset investment opportunities, which are emerging quickly against the background of economic transition and industrial transformation. The investment strategies include, but not limit to: non-performing loans(NPLs), distressed real asset restructuring，and distressed corporate restructuring.
DCL Investments is the pioneer of distressed asset investment in China. The firm currently manages several RMB and USD funds with total commitment about $1.5 billion (USD Equivalent). DCL Investments has successfully exited dozens of deals and delivered satisfactory and stable returns for our investors.