Recently, the Qixia District People’s Court of Nanjing City, Jiangsu Province issued a “Civil Ruling” ((2025) Su0113 Bankruptcy No. 37), ruling on the bankruptcy reorganization application of Nanjing Dongze Shipbuilding Co., Ltd.
The ruling showed that on March 21, 2025, the Qixia District People’s Court filed a case to review the debtor Dongze Shipbuilding’s application for bankruptcy reorganization. The applicant applied for bankruptcy reorganization on the following grounds:
Dongze Shipbuilding was established in 2005 with a registered capital of RMB 50 million and its business scope includes shipbuilding and repair. Dongze is now leasing its shipbuilding premises to a third party to engage in shipbuilding business and has no business of its own. Dongze has previously incurred huge losses due to the downturn in the shipbuilding industry. So far, the principal amount of debt is as high as RMB 370 million, and it is seriously insolvent; the total number of outstanding execution cases is 26, and the bank accounts have been frozen, so it is unable to repay the maturing debts. At present, the company’s rent is insufficient to repay the debt and lacks solvency.
The international shipbuilding industry has a good prospect. Dongze Shipbuilding has a 900-meter Yangtze River coastline and corresponding waters license, and is the only shipyard in Nanjing that meets the planning requirements. The coastline resources are extremely scarce and non-renewable resources. At the same time, the site of Dongze Shipbuilding has not been fully utilized has space for subsequent development.
Dongze Shipbuilding has a complete set of business assets and production factors, excellent shipbuilding performance, and good market recognition and reputation. In case of bankruptcy and liquidation, the value of its shoreline resources will go to zero, and the liquidation rate will drop significantly compared with reorganization.
It is feasible for Dongze Shipbuilding to reorganize. Now the state is going to vigorously promote the innovative development of shipbuilding and offshore engineering equipment industry and consolidate the competitiveness of the whole industrial chain in the shipbuilding field, and it is timely to actively promote the reorganization of Dongze Shipbuilding in this context.
After review, the Qixia District People’s Court held that the applicant Dongze Shipbuilding was insolvent and met the conditions for bankruptcy acceptance; however, it had the Yangtze River coastline resources and a complete shipbuilding system, and was feasible for reorganization. Based on this, it ruled to accept the bankruptcy reorganization application of Nanjing Dongze Shipbuilding Co., Ltd.
At the same time, the court has appointed Beijing Dacheng (Nanjing) Law Firm as the administrator of Dongze Shipbuilding. According to the notice on claim declaration, creditors should declare their claims to the administrator of Dongze Shipbuilding before 17:00 on May 30, 2025.