The shipyard assets of Hong Kong-listed China Huarong Energy are being sold to a bondholder as the company exits the shipbuilding sector.
The former China Rongsheng Heavy Industries said an unnamed bondholder has agreed to take over the "non-performing and debt-burdened" yard and engineering business.
Both parties have struck a deal to release all debts on completion.
China Huarong will then focus on the energy exploration and production sector.
Rongsheng was forced to restructure in 2016 under $2.56bn of debt in a tough shipbuilding market.
It once claimed to be China's largest shipbuilder.
