By Kyunghee Park

(Bloomberg) — South Korean shipbuilder STX Offshore & Shipbuilding Co. filed for courtroom safety, the newest bother to floor in a rustic the place the federal government is attempting to assist an business mired in losses and hunch in orders for vessels.

STX Offshore submitted the applying to the Seoul Central District Court on May 27, the Changwon, South Korea-based firm mentioned in a regulatory submitting Monday. The courtroom will determine whether or not to simply accept the request after reviewing the proposal, it mentioned. Shares of the corporate had been de-listed from the inventory market in 2014 after the corporate’s collectors transformed their loans into fairness.

South Korea’s shipbuilding business, the world’s second-biggest, has been mired in losses because the business’s largest gamers endure from an absence of orders amid a hunch in international crude oil costs. The troubles at South Korean builders additionally unfold to their rivals in Japan, China and Singapore, as a number of shipbuilders and offshore-platform makers warn of losses and plan to restructure.

South Korea vowed final month to revamp its delivery and shipbuilding industries. Contracts for brand spanking new vessels have shrunk, whereas delivery strains battling losses or smaller earnings are paring their workforce and contemplating consolidation after years of overcapacity depressed freight charges.

To learn extra in regards to the downturn that’s hurting Asian shipyards, click on right here.

Earlier this month, the federal government mentioned it is going to re-evaluate STX Offshore and different shipyards to search out out which of them is probably not price offering extra funds.

The analysis confirmed that STX Offshore may have extreme money issues and will default on debt on the finish of May, except drastic measures are taken, Korea Development Bank mentioned final week. The state-owned lender is the shipbuilder’s predominant creditor.

“Providing more loans will not only increase the creditors’ exposure but it’s uncertain whether the company will be able to repay the loans,” KDB mentioned within the May 25 assertion.

STX Offshore had been restructuring its debt with its collectors since April 2013 and acquired 850 billion received ($713 million) in loans and debt-for-equity swap to revive the corporate.

The firm’s troubles got here in 2013 got here after organising a shipbuilding and offshore complicated in Dalian, northeastern China at a time when Asia’s largest economic system slowed and the European monetary disaster added to a plunge in cargo charges. That led to the dismantling of the STX Group and lots of the models went into debt restructuring with collectors.

© 2016 Bloomberg L.P