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| Published：2020.05.18 News Sources：Qingdao Gute Ship Supplies Co., Ltd. Views： | |||
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Chengdong Shipbuilding Ends Enterprise Regeneration Program and Will Complete Sale
The completion of the regeneration process paved the way for the sale of Chengdong Shipbuilding. In December last year, an alliance formed by Changwon City equipment manufacturer HSG Heavy Industries and Curious Partners Investment signed an agreement to acquire all the assets of Chengdong Shipbuilding at a price of 200 billion won (about 178 million US dollars). A spokesman for the Export-Import Bank of Korea, the largest shareholder of Seongdong Shipbuilding, said: "Since the global financial crisis in 2008, most medium-sized shipbuilding companies have either reorganized or ceased operations. In the midst of difficulties, Seongdong Shipbuilding has completed its business The regeneration process resulted in a successful mid-sized shipbuilding merger. " It is understood that Seongdong Shipbuilding is one of the most important medium-sized shipbuilding companies in South Korea. It entered the shipbuilding market in 2004 and once ranked eighth in the world in terms of the number of handheld orders in 2007. However, in 2010, Chengdong Shipbuilding began to fall into financial difficulties. In April 2010, Chengdong Shipbuilding signed a voluntary reorganization agreement with creditors. Since 2010, Chengdong Shipbuilding has successively received nearly 4 trillion won (about 3.74 billion US dollars) of capital injection, including 2.5 trillion won in loans and 1.5 trillion won in debt-to-equity swaps. Among them, the major creditor of Seongdong Shipbuilding, the Export-Import Bank of Korea, issued a 2.1 trillion won loan and converted 1 trillion won in debt into stocks. Since November 2017, Chengdong Shipbuilding has been unable to receive any new ship orders. In early March 2018, the South Korean government decided that Seongdong Shipbuilding would apply for court takeover rather than bankruptcy liquidation. The South Korean government recommended that the court maintain the business of Seongdong Shipbuilding, but shift its business scope to maintenance, branch assembly, or hull construction. In October 2018, Chengdong Shipbuilding began to list and sold, and three consecutive sales ended in failure. In November last year, Chengdong Shipbuilding launched the fourth sale tender, which was finally sold at a price of 200 billion won. This price is much lower than the 310 billion won estimated by industry insiders. As of the end of 2018, Chengdong Shipbuilding's assets totaled 939.4 billion won (about 768 million US dollars), liabilities were as high as 2.7 trillion won (about 2.206 billion US dollars), and its operating loss was 33.3 billion won (about 27 million US dollars). |
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