Court O.K.s acquisition of Sungdong ShipbuildingThe Changwon District Court on Monday announced the end of the corporate rehabilitation procedures for Sungdong Shipbuilding & Marine Engineering, a local mid-sized shipbuilder, according to the Export-Import Bank of Korea.
The court’s announcement paves the way for the shipbuilder's acquisition by a consortium led by HSG Heavy Industries. The consortium in December signed a contract to buy the debt-laden shipbuilder for 200 billion won ($178 million).
“Since the 2008 global financial crisis, most of the mid-sized shipbuilders either carried out restructuring or halted operations,” said a spokesperson for the policy bank in a statement. “Amid [the difficulties], Sungdong Shipbuilding & Marine Engineering completed the corporate rehabilitation procedures to generate a successful merger and acquisition case of a mid-sized shipbuilder.”
By Jin Min-ji [email@example.com]