Sungdong Shipbuilding & Marine Engineering from South Korea, once upon a time a top 10 yard globally, now stands on the brink of liquidation.
The yard’s accountants have published a report this week that states creditors can get more money from liquidating Sungdong rather than keeping it going as an ongoing concern.
The government is likely to make a ruling on Sungdong’s future within the next two weeks.
Already 90% of its workforce has been cut as orders have dried up.
In May this year Sungdong won its first order since December 2015 with Greece’s Kyklades Maritime linked with a big aframax order, putting pen to paper for five firm plus two options of 115,000 dwt tankers. The price per ship was reported as $44m. These orders will disappear if Sungdong is shuttered.
Sungdong, started out as an equipment manufacturer, then a block builder, before moving into shipbuilding in 2004, pioneering onland construction and becoming a global top 10 yard before tough times hit. It has been in a debt workout scheme for most of this decade.