A Korean marine equipment manufacturer specialising in ship cabin units, Wartsila Accommodation Systems Korea (WAS Korea), has been deemed financially unviable following the company's value turning to negative figures.
Two domestic companies acquired WAS Korea: In 2006, Hyundai Metal purchased all the company's shares for US$7.04 million, and later Taechang, a subsidiary of Hyundai Metal, took over 89.4 percent of the shares.
WAS Korea's assets stood at KRW30.9 (US$25 million), tripling from its 2005 figures; however its debt ratio last year also approached 567 percent, crippling the company.
WAS Korea was formed as a joint venture with Finland's Piikkiio Works in 1986, and its scale increased from 2006 due to excessive borrowing and frequent transactions with sister companies.
The company is unlikely to be rehabilitated unless it receives strong financial support elsewhere.