Creditors end debt workout for C&Heavy

Creditors of C&Heavy Industries Co in South Korea announced that they have terminated the troubled shipbuilder?s debt workout program. The move came after a Malaysian fund that showed interest in taking over C&Heavy failed to put down a 10 billion won ($6.98 million) deposit before yesterday?s deadline, said a spokesman at Woori Bank, a major creditor of the firm. The Mokpo, South Jeolla-based shipbuilder will likely apply for court receivership.

Creditors first tried to remove C&Heavy from debt workout in January, but Meritz Fire and Marine Insurance Co, the largest creditor, pushed for the sale of the shipbuilder instead.