South Korea’s mid-sized refinery, chemical and power plant and related equipment builder Daechang HRSG Corp. declared bankruptcy on Friday as it failed to pay back 4 billion won ($3.7 million) worth debt, according to industry sources on Monday.
The Ulsan-based company usually deals with the Korea Development Bank (KDB) and BNK Kyongnam Bank. The company received the Export Tower Awards twice by the Korea International Trade Association after achieving $70 million in exports in 2014 and $100 million in 2016, but its business has been on a downward spiral over the past year due to lack of orders amid industry-wide slump.
The company plans to file for court-led workout program. An official from the company said that it is suffering from financial troubles due to the slowdown in the plant industry and would faithfully carry out reorganization program to normalize its business.
By Seo Dae-hyun and Choi Mira
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