Since imperiled SPP Shipbuilding’s urgent plea to its creditor to issue refund guarantees has fallen on deaf ears, management have taken their demand to the top, namely the president of South Korea.
SPP Shipbuilding, one of the world’s leading builders of MR tankers, could close by the end of next year unless its creditors allow it to take on orders. Management at the yard, which has been under a debt workout scheme for the past couple of years, has appealed to its creditors to allow it to receive new orders.
In a written statement last month, SPP employees claimed: “Since 2014, the company has received no new orders due to the control of creditors. The yard’s operation rate will be only 50% by H1 next year and the company will have to close the yard by the end of the year.”
Since this failed to garner any response from lead creditor, Woori Bank, management has now taken its appeal to Park Geun-hye, the South Korean president, among others. SPP is the only yard in Korea which while undergoing restructuring is making a profit. It has sent a letter to Park, plus a number of government organisations asking for help.
The ugly face of Korean corruption.
The yard is sound and have numerous enquiries. Cant take the orders because of the bank. Century 21 tong yeong have same problem . The yard is idle.