Daewoo warns of ‘builder’s default’

SEOUL: Daewoo Shipbuilding & Marine Engineering Co Ltd expects to receive considerable number of calls from shipowners for “builder’s default” if it goes into court receivership, said chief executive officer Jung Sung-leep yesterday. Shipowners can call builder’s default, which is cancelling existing orders for ships, in the event of a shipyard entering court receivership. State banks on Thursday said they were preparing a US$2.6 billion (RM11.5 billion) bailout for Daewoo Shipbuilding. Agencies