A September bankruptcy hangs over embattled giant Korean yard Daewoo Shipbuilding & Marine Engineering (DSME) unless it can raise KRW1trn ($871m) over the next three months to keep operations moving.
The yard, suffering from billions of dollars of debts, has most recently hit by delayed drillship payments from Angola’s Sonangol.
DSME has bonds for repayment in September.
Prosecutors today called in the former CEO of DSME, Nam Sang-tae, over alleged accounting fraud at the hard hit yard.
Nam is also accused of handing out contracts to close friends and pocketing some of these takings.
DSME’s accounting fraud totals some $4.5bn over a three-year period to last year.
Lead creditor Korean Development Bank (KDB), meanwhile, has said it aims to sell DSME within the next three years.
