STX Dalian starts bankruptcy reorganization

Six affiliated companies of STX Dalian Shipbuilding, China's largest wholly foreign-funded shipbuilding company, are to start bankruptcy reorganization procedures, a court in Dalian City of northeast China's Liaoning Province said on Thursday.

STX Dalian Shipbuilding is the Chinese unit of STX Group, one of the world's top five enterprises in the shipbuilding industry.

According to a statement issued by Dalian Intermediate People's Court, creditors should submit claims to the six companies before Sept. 26, and the first meeting of creditors should be held between Oct. 9 and 11.

The court said 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. 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.