BL reported that last week, Vinashin, Vietnam's prized shipbuilder, saw its third boss in two months as the government scurried to avoid debt default. Vinashin is teetering on the brink of bankruptcy with debts around USD 4.7 billion against assets reported at USD 4.8 billion.

The government has set up a committee to restructure the company and asked domestic commercial banks to reschedule the debts. The company's troubles are also worrying foreign banks and investors who hold USD 187 million in bonds and USD 600 million in outstanding loans. Reports have it that payments to foreign debt holders might be postponed.

The company received its first of dozens of orders for bulk carriers in 2004 from British shipping company, and by 2008 the order book had swelled to USD 6 billion. The corporate structure sprawled into 28 shipyards and 200 subsidiaries. The 2008 global recession hit the company hard. New orders dried up and the company ran out of foreign currency to pay for imported components, accounting for 70% of the value of the ships.

(Sourced from www.thehindubusinessline.com)