By Kyunghee Park

(Bloomberg) — South Korea’s prosecutors raided the places of work of Daewoo Shipbuilding & Marine Engineering Co. because the world’s second-largest shipbuilder tries to boost funds by way of asset gross sales to cut back debt.

The raid comes after an audit committee of Daewoo Shipbuilding requested an investigation into two former chief government officers for alleged mismanagement of the corporate, the Geojae, South Korea-based shipyard mentioned in an e-mailed response to a Bloomberg News question.

Daewoo Shipbuilding posted its largest loss final 12 months after write-offs for delayed tasks. The firm is amongst shipyards restructuring to boost funds after deliveries of offshore drilling and manufacturing models have been pushed again, as oil costs which have fallen by half within the final two years crushed demand.

Prosecutors raided the corporate’s places of work in Seoul and Geojae, Daewoo Shipbuilding mentioned. Computer laborious drives, account books and paperwork have been confiscated by the officers, Yonhap News Agency reported, citing the Supreme Prosecutors’ Office. An individual who picked up a name to the media workplace of the Seoul Central District Prosecutors’ Office mentioned she couldn’t touch upon any investigation by the workplace.

Daewoo Shipbuilding posted a web loss, excluding minority curiosity, of three.19 trillion received ($2.8 billion) in 2015. The firm restated its earnings from 2013 on the recommendation of its auditors to raised replicate the write-offs in its financials.