South Korea’s Changwon District Court has officially put financially trouble shipyard Sungdong Shipbuilding under receivership on Friday.
According to the court, auditor Deloitte Anjin will carry out due diligence on to determine the company’s value of liquidation and its going concern value.
The court decision follows Seoul ruling in March that Sungdong Shipbuilding will file for court receivership and chang its business to focus on ship repair and possibly block building.
Sungdong, which was founded in 2003 and had grown to be a reputable mid-sized shipyard in South Korea, started having financial difficulties in 2010 after the global financial crisis. After surviving on government subsidies for 8 years, the government finally decided to have the bankruptcy court take over the shipyard.
Another major South Korean shipbuilding STX got its self-rescue plan accepted by creditors, which withdrew a plan to place the shipyard under court receivership.
