Sungdong Shipbuilding officially placed under court receivership

Sungdong Shipbuilding officially placed under court receivership

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.

Jason Jiang

Jason is one of the most prolific writers on the diverse China shipping & logistics industry and his access to the major maritime players with business in China has proved an invaluable source of exclusives. Having been working at Asia Shipping Media since inception, Jason is the chief correspondent of Splash and associate editor of Maritime CEO magazine. Previously he had written for a host of titles including Supply Chain Asia, Cargo Facts and Air Cargo Week.

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