Yangzijiang Shipbuilding denies speculation it has agreed a deal to take over the shipyard assets of China Rongsheng Heavy Industries.
Market players say Nantong-based Rongsheng has accumulated as much as CNY 20bn ($3.1bn) of debt and that no one will be willing to take over the troubled yard owner if that amount is not drastically reduced.
They add that the only way for Rongsheng to cut its debt burden is to go through court liquidation and be placed under the control of its creditors.
