Seoul: A South Korean yard is teetering on the financial abyss. C&Group was in dire trouble prior to the current global financial turmoil. It now is struggling to offload assets to appease debtors. No one bid for its second shipyard on Koje yard in a public tender that ended last week, the group has revealed.
Put up for sale in the tender was Shinu Shipbuilding & Marine run by C& Heavy Industries (C&HI), an emerging shipbuilder belonging to the group. C&HI has won orders for seven Capesize bulkers (including those on option) for construction at Shinu, its second yard on Koje Island. Construction of the vessels has yet to start.
Struggling to build its own yards let alomne the ships on order C&HI has failed repeatedly to issue bonds and will now look to hustle a fire sale of Shinu to a fellow Koje builder. [21/10/08]
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