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10.27.2016 19:30

Chinese State-Owned Shipping Company Declared Bankrupt

Zhejiang Ocean Shipping liquidated after struggling to repay debts of 8.45 billion yuan
By Bao Zhiming and Chen Na

(Beijing) — A major Chinese state-owned container shipping company has been declared bankrupt after it struggled to repay debts of 8.45 billion yuan ($1.25 billion).

The Hangzhou Intermediate People's Court in Zhejiang province granted Zhejiang Ocean Shipping Co. Ltd.'s application to liquidate, according to a court document viewed by Caixin.

Zhejiang Communications Investment Group Co. Ltd., the owner of Zhejiang Ocean Shipping, filed for liquidation of the shipping company in July, according to the document.

China's container shipping industry has seen its profit shrink as it remains mired in an overcapacity crisis. Zhejiang Ocean Shipping doubled its shipping capacity from 1.1 million tons in 2009 to 2.28 million tons in 2013, a person with knowledge of the matter told Caixin.

Contact reporter Chen Na (nachen@caixin.com); editor Kerry Nelson (kerry@caixin.com)

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