Korean yard files

A shipbuilder and major shareholder in the company that operated the Sewol ferry has filed for receivership in South Korea.

Chonhaiji, which has 39.4% of Chonghaejin Marine Company, has debts of $34m with Korea Development Bank.

It applied to a court in Changwon last week, a court official told Reuters.

The ship block maker last year branched out into full shipbuilding, winning an order to build a $21.6m plate/coil carrier from steel maker Posco.

It reported net profit of KRW 1.01bn ($1m) for 2013, but missed some debt repayments last month as its business suffered in the aftermath of the ferry disaster.

Chonhaiji is one of the companies controlled by the sons of businessman Yoo Byung-un, who is the subject of an intense man-hunt by Korean authorities over the Sewol sinking, which killed more than 300 people in April.