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Sungdong Shipbuilding embarks on shun liquidation

Sungdong Shipbuilding embarks on shun liquidation

Indebted South Korean shipbuilder Sungdong Shipbuilding & Marine Engineering on Sept. 30 kicked off its fourth attempt to sell, in a move to shun looming liquidation before the end of 2019.

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A consortium led by HSG Heavy Industries signed a contract Tuesday to buy debt-saddled South Korean shipbuilder Sungdong Shipbuilding & Marine Engineering for 200 billion won ($173 million), allowing the shipbuilder to avert liquidation of its assets.

The Tongyeong-based company’s existing stake and newly-issued shares, plus two additional shipyards, which are 425,000 square-meter wide if combined, are roughly estimated at 300 billion won ($250.3 million). 

This came after earlier failed attempts -- through open biddings and a stalking-horse bid -- to sell the troubled firm since Changwon District Court placed the firm under court receivership in April 2018. It is owned by creditors including Export-Import Bank of Korea, NongHyup Bank and Korea Trade Insurance Corp.

Once the 10th-largest shipbuilder in the world by global orders, Sungdong fell from grace in 2008 due to the financial crisis and order cancellations. In 2010, the company was handed over to creditors including the Export-Import Bank of Korea, NongHyup Bank and the Korea Trade Insurance Corp.

Maritime Business World 

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