A Chinese court has agreed that STX Dalian Group can enter receivership but there is a strong chance of it being liquidated.

Informed sources say six companies that fall under STX Dalian Group, including STX Dalian Shipbuilding, have officially been informed by the Dalian court of their receivership status.

A Chinese law firm is said to have been appointed to act as receiver and has been given one year to assist it in a resumption of normal operations, something regarded as a big challenge.