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Sungdong Shipbuilding On Verge Of Bankruptcy After Failing To Find Eligible Bidders

Logistic News - Published on Tue, 18 Jun 2019

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Sungdong Shipbuilding & Marine Engineering Co, a midsized local shipbuilder currently under court receivership, is on the verge of declaring bankruptcy, industry insiders said, after it failed to find eligible buyers ahead of a deadline for its sale. The Changwon District Court, which manages Sungdong’s rehabilitation process, rejected bids from three companies, questioning their funding capacity. It was the third time that the sale of Sungdong had fallen through since it went up for sale in October 2018. Sungdong was placed under court receivership in March 2018. The court has been trying to find a new buyer for the shipbuilder, with the deadline set for mid-October.

Industry observers said that there’s now not enough time left to complete the sale before the deadline.

Kim Hyun, an analyst at Meritz Investment & Securities Co said that “After takeover bids faltered for the third time, there’s a high possibility that the court will start taking steps for Sungdong’s bankruptcy and liquidation. Its creditors also reportedly decided not to give financial support.”

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Posted By : Mohan Sharma on Tue, 18 Jun 2019
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