Daewoo Shipbuilding & Marine Engineering files for court receivership after Sky I&D deal collapse

It is reported that the mid-sized construction company Daewoo Shipbuilding & Marine Engineering has applied for corporate rehabilitation procedures (court receivership). Following Shin Dong-A Construction, Daejeon Construction, SAMBU Construction, and Angang Construction earlier this year, five construction companies have entered court management procedures.

According to the construction industry and others on the 28th, Daewoo Shipbuilding & Marine Engineering is said to have applied for court management at the Suwon Rehabilitation Court on the 27th. Daewoo Shipbuilding & Marine Engineering had also received an order to commence court management in 2023, but fell back into management difficulties after two years.

Established in 1969, Daewoo Shipbuilding & Marine Engineering, the parent company of Se-rim Development Industry, had previously applied for court management in 2022 due to worsening financial conditions. After that, the Seoul Rehabilitation Court approved the rehabilitation plan for Daewoo Shipbuilding & Marine Engineering, which was acquired by the real estate development company Sky I&D and underwent a normalization process.

Subsequently, it has been reported that Sky I&D faced difficulties in securing business funds due to the construction market and ultimately abandoned the acquisition and operation, leading Daewoo Shipbuilding & Marine Engineering back into court management.

According to the Financial Supervisory Service, the debt ratio of Daewoo Shipbuilding & Marine Engineering is at a very high level of 838.8% as of the end of 2023.

Meanwhile, earlier in January, Shin Dong-A Construction, ranked 58th in construction capability evaluation, applied for corporate rehabilitation procedures at the Seoul Rehabilitation Court, and on the 16th of the same month, Daejeon Construction, ranked 2nd in Gyeongnam, applied for corporate rehabilitation procedures at the Busan Rehabilitation Court. On the 24th, SAMBU Construction, ranked 71st in capability evaluation, applied for court management.