China's Everbright Shipbuilding has resumed its shipyard operations following a restructuring that addressed its outstanding obligations totalling approximately CNY400 million (US$60 million).
Located in Hubei province, Everbright was established in November 2006. Within two years, the company had the capacity to build offshore vessels and other commercial vessels of up to 35,000 DWT.
However, due to factors such as market fluctuations, internal mismanagement and long-standing historical issues, Everbright suffered a capital chain rupture and ended up with with nearly CNY400 million in debt. The company's assets and equipment were seized in multiple rounds, and its main shipyard became idle due to a lack of activity.
In 2017, after an unsuccessful attempt to introduce strategic investors for self-rescue, Everbright became nearly bankrupt and completely suspended its operations.
In 2023, creditors Wuhan Lante Automation System Engineering and Wuhan Gaoren Welding Materials filed an application for bankruptcy liquidation against Everbright with the Intermediate People’s Court of Ezhou City in Hubei on the grounds that Everbright was unable to pay off its mature debts and had clearly become insolvent.
On November 9 of that year, the court ruled to accept the bankruptcy liquidation case of Everbright and appointed Beijing Guantao Zhongmao (Xiamen) Law Firm as the case administrator.
On March 29, 2024, the proposal on whether to convert the bankruptcy liquidation case of Everbright Shipbuilding into a bankruptcy restructuring procedure was voted through during the first creditors’ meeting. Subsequently, the case administrator submitted the draft restructuring plan of Everbright Shipbuilding to the Ezhou Intermediate People’s Court.
On December 17, 2024, Everbright filed an application for restructuring with Ezhou Intermediate People’s Court on the grounds that it met the conditions for restructuring. Seven days later, the court ruled that the restructuring should be formally initiated.
On February 19, 2025, the third creditors’ meeting approved the draft restructuring plan for Everbright Shipbuilding through a group vote. On February 24, the Ezhou Intermediate People’s Court ruled to approve the restructuring plan and terminate the restructuring proceedings for Everbright Shipbuilding.
Earlier this month, Chinese media confirmed that Everbright's restructuring was finally completed.
