The embattled shipbuilder HHIC-Phil, which operates the Subic shipyard, filed for court receivership and the restructuring will be authorised by the Olongapo City Regional Trial Court in the Philippines.
HHIC-Phil has been constructing containerships, gas carriers, tankers, amongst others.
The prolonged downturn of the global shipbuilding industry has hit HHIC-Phil hard as it saw newbuilding orders shrank since 2016.
The output of the yard dropped to 418,444 gt in the third quarter of 2018 from 1.16m gt in 2016, and the rate of operation plunged to 27.9% from 77.4% over the same period, the local media reported.
The Subic shipyard’s assets have been valued at KRW1.84trn ($1.64bn), according to the regulatory filing.
Reports said that HHIC-Phil has so far met around 65% of its KRW2.1trn restructuring scheme proposed by its creditors.
The parent firm HHIC is itself going through a restructuring since 2016, with Korea Development Bank as its lead creditor.