South Korea’s troubled shipbuilding industry is showing signs of recovery, with the country’s three biggest shipyards surpassing rivals in China and Japan in terms of new orders, the Financial Times reported.s Daewoo Shipbuilding had the biggest order backlog among global shipbuilders with 88 ships representing 6.26m CGTs (compensated gross tonnes) as of the end of May. Hyundai Heavy Industries’ 65 vessels totalling 3.33m CGTs was next, followed by Samsung Heavy Industries’ 60 ships totaling 3.2m CGTs, according to industry tracker Clarkson Research.

South Korea’s debt-ridden Daewoo Shipbuilding & Marine Engineering Co., the world’s second biggest shipyard, was thrown a lifeline after creditors agreed to a massive debt-to-equity swap as part of a bailout plan, The Wall Street Journal reported.

Daewoo Shipbuilding & Marine Engineering Co., the world’s largest shipbuilder, won a reprieve from major bondholder National Pension Service and other lenders, helping avert a payment crisis that had threatened to almost shut the company, Bloomberg News reported. The NPS agreed to restructure 1.55 trillion won ($1.4 billion) of bonds issued by the company after the shipbuilder, the Korea Development Bank and Export-Import Bank of Korea took steps to ensure repayment of the debts, the pension service said in a statement April 16.

South Korea’s National Pension Service has a decision to make -- help the world’s biggest shipmaker survive, or let it die. Creditors to Daewoo Shipbuilding & Marine Engineering Co. are due to meet next week to decide whether to convert some of the 1.55 trillion won ($1.4 billion) of bonds into equity to help the unprofitable company, Bloomberg News reported. Tipping the scale will be the decision of NPS, the biggest holder of debt that matures this month.

CEO Jung said he expected Daewoo to receive considerable calls from shipowners for "builder's default", cancelling existing orders, if the company goes into court receivership - the regulator's alternate plan for the troubled firm in case the bailout does not go through, the International New York Times reported on a Reuters story.

South Korean state banks are preparing a fresh $2.6 billion bailout for floundering Daewoo Shipbuilding & Marine Engineering Co Ltd (042660.KS), which has built up huge losses from offshore projects and risks missing debt repayments, Reuters reported. Without the infusion of funds, Daewoo is not expected to be able to redeem 940 billion won ($840.49 million) in corporate bonds maturing this year - starting with 440 billion won due in April, the country's financial regulator, the Financial Services Commission (FSC), said on Thursday.

South Korea's KEPCO, the likeliest suitor for Toshiba Corp's troubled nuclear business, is holding off from making an approach because of question marks over the scale of damage at the unit and political uncertainty in both South Korea and the United States, people with direct knowledge of the matter say, Reuters reported. Japanese TV-to-rail conglomerate Toshiba has been battered by a $6.3 billion hit from overruns in the nuclear business and has widened a probe into governance failures at its U.S.-based unit, Westinghouse. It is now considering a sale.

South Korea’s financial authorities are considering a new bailout package for troubled shipyard Daewoo Shipbuilding & Marine Engineering Co. that includes haircuts for bondholders and fresh loans, people directly involved in the matter said, The Wall Street Journal reported. The Financial Services Commission, Korea’s main financial regulator, wants the yard’s creditors to write down 20% to 30% of its debt in addition to banks lending it another 3 trillion won ($2.68 billion), according to the people involved.

Daewoo Shipbuilding & Marine Engineering (DSME), once one of Korea's biggest shipbuilders, faces a potential crisis, despite claims to the contrary. The financial authority here has assured the market that the company faces no such scenario where it could default on its debt, The Korea Times reported. But the question remains as to whether Daewoo can refinance and repay 440 billion won owed to investors next month. With the company running out of money without any new projects that can improve cash flow, the market remains concerned over the lack of liquidity.

A South Korean court declared Hanjin Shipping Co Ltd bankrupt on Friday, after ruling earlier this month that the firm's liquidation value would be worth more than its value as a going concern, the International New York Times reported on a Reuters story. Hanjin Shipping, which had been the world's seventh-largest container shipper, applied for court receivership in late August after its creditor banks halted further support. The Seoul Central District Court said in a statement it has chosen a bankruptcy administrator, and claims by creditors are due by May 1, 2017.