The parent company and several subsidiaries of the Vietnam Shipbuilding Industry Group (Vinashin) will be restructured into a new shipbuilding industry corporation, the Ministry of Transport announced Thursday.

In its newly-released directive, the ministry announced the establishment of the Shipbuilding Industry Corporation (SBIC), which is apparently built from the wreckage of the heavily indebted Vinashin Group, which nearly collapsed in 2011 due to steep losses while several of its chief officials have been charged for financial wrongdoings.

The name Vinashin will officially become a thing of the past once the SBIC obtains its corporate license, according to the ministry.

SBIC is a Single Member Limited Liability Company whose 100 percent stake is held by the government. At the time of establishment, the total registered capital of the company is VND9.52 trillion (US$449.06 million).

The company and its eight subsidiaries will be operating under the direct management of the transport ministry, and the Minister of Transport is fully authorized to assign its chief officials.

The main businesses of SBIC is building, repairing, and maintaining vessels; operating seaports and wharfs; sea transporting; building shipyard and other water constructions; and supporting industries for the shipbuilding sector.

SBIC is also required to join hands with the government and the board to restructure Vinashin to completely settle its debts.

On October 10, Vinashin issued international bonds in a bid to restructure its $600 million worth of foreign bank loans.

Its debts from domestic sources are estimated at VND17 trillion ($801.89 million) and Vinashin officials said they will try to settle this by the end of this year, or the first quarter of next year.

Vinashin’s total debts amount to some $4 billion.