Authorities have clinched a deal to sell the former Hanjin Heavy Industries and Construction Philippines (HHIC-Phil) shipyard in Subic Bay.
Philippines Maritime Industry Authority administrator Robert Empedrad told the Manila Times that a contract has been finalised and the takeover would be completed soon.
He confirmed a US company would acquire the plant in collaboration with an Australian shipyard operator.
"If not due to pandemic, this [takeover] is finished," Empedrad added.
"An Australian company would operate the shipyard. This is a welcome development because it would give employment to laid-off shipyard workers."
Austal and Cerberus in the frame?
Empedrad has not disclosed names, but sources told the newspaper that Australian shipbuilder Austal would team up with US fund Cerberus Capital Management for the deal.
Austal had been linked to a takeover last year.
The company said at the time: "Austal has made major investments in its Australasian shipyards, including in the Philippines, and is continually assessing opportunities to further expand its operations if they create additional shareholder value.
"However, there is no certainty that any additional expansion opportunities will be either pursued or completed."
Austal said it had no further comment on Tuesday.
The Philippine Navy is acquiring 100 hectares of the site for a vessel base, however.
Workers to return?
The government wants to see 20,000 workers return to the yard.
HHIC-Phil was set up in 2006 but ceased production in February 2019, following a $400m loan default and an application for court rehabilitation in January.
Damen Shipyards of the Netherlands, France's Naval Group and a consortium of US firms had also pitched plans for the facility.
Other suitors included still unnamed Chinese firms and domestic port manager International Container Terminal Services.
Cerberus is better known as a buyer of distressed shipping loans,
In recent years the fund has snapped up a €2.6bn, 263-vessel portfolio from Nord/LB and was part of a consortium that bought Germany's HSH Nordbank for $1.2bn.
