Another creditor managing shipbuilder Sungdong Shipbuilding and Marine Engineering, once one of the world's top 10 shipyards, also stands on the brink of liquidation.

In a bid to prevail amid increasing competition from South Korean shipbuilders, the three are aiming to cut costs by jointly procuring materials, developing new technologies and producing common designs.

The shipbuilder's board initially sought to finalize the debt-to-equity plan, including relisting its shares on the stock market, last week.

With this, the shipbuilder has sought help from the government to find investors that can take over the operation of its shipyard in Subic, as well as to help its employees, who have taken the brunt of the company's financial woes.

Since it involves two shipbuilders with high global market shares, the deal is subject to rulings by the antitrust authorities of related countries, because it may undermine the bargaining leverage of shippers and vessel buyers in many countries.

Given the huge investment needed to build even a single long-distance, export-quality maritime vessel, governments stepped up both as producers and procurers - an arrangement true not only for states but also for private corporations in which shipbuilders operate shipping lines.

But Deveras was "no comment" when asked if one of the potential investors is a Japanese shipbuilder.

Hanjin Philippines was established in 2006 as a subsidiary of South Korean shipbuilder Hanjin Heavy Industries and Construction Co.

Phillips said the cooperative agreement will allow the service and the shipbuilder to collaborate for up to three years.

The owners transferred the land the yard stands on to another company just months before the shipbuilder went into receivership.

The yard, which dates back to 1902, was the last commercial shipbuilder on the River Clyde.

Summary: HONG KONG - China Rongsheng Heavy Industries Group, China's largest private shipbuilder, issued a surprise warning that it expects to post an annual net loss for 2012 on sharp declines in orders and prices of new vessels after the shipping industry took a downward turn during the year.

The spokesman said that the steelmaker had been contacted by the advisor in charge of the sale and added that the company would explore taking a minority stake in GTT if its shipbuilder clients would request it to join their bid.