A shipyard of Daewoo Shipbuilding & Marine Engineering Co. is pictured in Geoje, South Korea in March. Photo: Kim Dong-min/Associated PressSouth Korea’s Daewoo Shipbuilding & Marine Engineering Co., the world’s second-largest shipbuilder by revenue, could go into receivership as soon as next week unless its creditors agree to massive losses, according to people involved in the restructuring efforts. Daewoo’s creditors are expected to meet on Monday and Tuesday to decide whether they will convert the majority of the 1.55 trillion won ($1.4 billion) in unpaid bondholdings into equity as part of a 2.9 trillion won bailout package unveiled in March. Daewoo lost 2.7 trillion won in 2016, following a 3.3 trillion won loss a year earlier, hurt by stagnating ship orders and China’s economic slowdown. A person involved in the rescue efforts said that Daewoo and its creditors “are burning the midnight oil” to reach a compromise.

Source: Wall Street Journal April 12, 2017 16:08 UTC