Zhejiang Wenzhou Intermediate People’s Court announced this week that Wenzhou Shipping’s assets will be liquidated, after its parent firm applied to the court for bankruptcy protection, a Wenzhou media agency reported.

In April this year, Zhejiang Shipping had alerted that two of its subsidiaries, Wenzhou Shipping and Taizhou Shipping, were dogged by debts including overdued financial leasing repayments totalling RMB36.62m ($5.43m).

Wuzhou Shipyard, another subsidiary of Zhejiang Shipping Group, was declared bankrupt in December 2015.