(Yicai Global) Aug. 23 -- The future of Zhejiang Shipbuilding, whichwent into bankruptcy restructuringtwo years ago, is still not clear as the shipyard resurfaces under new ownership and CNY1.5 billion (USD218 million) in funds from an investment armofChina'ssecond-largest property developer.

Evergrande Group's wholly ownedShanghai Yingjun Investment Management willserve as Zhejiang Shipbuilding'srestructuring investorand serviceits debt, according to a draftreorganizationplan released by the team sorting out the Ningbo-based firm. It is not yet possible to fully grasp the intention behind the takeover, but theplanoutlines a move to diversify the shipyard's business.

Yingjun Investmenthasbidonmanybusiness land parcels in Zhejiang province over recent years, alongsideitsinvestments insoccerschools and sports parks, online news portal Jiemian reportedyesterday, but this is apparently its first venture into the maritime sector.

Some436 creditorshavereported CNY6.5 billion worth of debt tothe yard'sbankruptcytrustees. Evergrande willpay almost a quarter of that to gainfull controlofZhejiang Shipbuilding.The reorganization plan now awaits approvalviaa vote at acommitteemeeting of creditors.

Founded in 1969, Zhejiang Shipbuilding,which isbasedinNingbo, Zhejiang province, has mainly builtservice and auxiliary craft-- bulk carriers, engineering vessels, container ships and floating docks, per Bloomberg --for marine engineering,and has held its placeat the forefront of China's ship building industrythroughout.

The company was state owned until Sinopacific Shipbuilding acquired it in 2003, but the parent then headed into the financial doldrums itself, Asia Shipping Media reported in April 2016.Zhejiang Shipbuildingbecameunable toservice itsmaturing debts and a local court declared the companyinvoluntarilybankruptupon applicationbyits creditors in 2016.

Zhejiang Shipbuilding'snext port of call remains the stuff of speculation.

Editor: Ben Armour