New Horizon, a ship owned by Vinashinlines, which was held in Pakistan for two months in 2012 when the company failed to pay its partner in that country
One of five subsidiaries transferred to shipping firm Vinalines from debt-laden state shipbuilder SBIC has begun the bankruptcy process.
The Vinashin Ocean Shipping Company, or Vinashinlines, has petitioned the Hanoi People’s Court for permission to file for bankruptcy.
A statement released earlier by the firm said that operations would not be affected while it awaited the court's order.
In late February, the Ministry of Transport ordered shipping giant Vinalines to bankrupt Vinashinlines as well as another shipping firm, Falcon.
SBIC, formerly known as Vinashin, handed over the five subsidiaries as part of a restructuring plan approved by the government after running up over US$4 billion in debts in 2010.
The debts owed by the five are estimated at VND3.8 trillion ($180.3 million), according to Vinalines, which said it is facing interest payments of VND150 billion ($7.12 million) per year.
The firm, which is selling old ships and other facilities to raise money to repay the debts, wants the government to order its creditors -- the state-run Bank for Investment and Development of Vietnam and four other local banks -- to freeze debt and interest repayments for two years.
It has not publicly released its balance sheet for last year, but said in a statement that it is still struggling with financial issues mainly caused by the debts.