Creditors end debt workout for C&Heavy

Creditors of C&Heavy Industries Co. said they have terminated a three-month debt workout program for the beleaguered small shipbuilder in South Korea and will make a final decision next week. The creditors, led by Woori Bank, declared that their debt rescheduling for the shipbuilder has ended and said they will wait until today for a Malaysian fund, which expressed interest in purchasing the firm, to make its initial deposit.

If the guarantee money is not paid, creditors will decide whether to liquidate the shipyard or allow other measures to revive it. C&Heavy Industries, a shipbuilding affiliate of C&Group, was placed under a debt workout program in early December after the credit crisis caused the company’s overdue debt to swell. Meritz Fire & Marine Insurance Co, the largest creditor, and other lenders have pushed for a sale of the shipbuilder since late January.