South Korea’s Hanjin Heavy Industries & Construction (HHIC) is seeking a debt restructuring with its creditors and is expecting to post its sixth consecutive year of losses in 2015, reports said.

In a regulatory filing to the stock exchange, HHIC said it faces a temporary liquidity shortage and seeks to restructure its debts with creditors under a voluntary agreement.

Local media reports mentioned that HHIC is requesting its major creditor Korea Development Bank (KDB) to approve the debt restructuring plan, allowing the yard to then delay debt repayments and obtain extra funding.

The Busan-based shipbuilder also said its projected deficit is a result of weak demand for ships amid the oversupply of vessel tonnage, as well as troubles with its investment in a shipyard in the Philippines and labour disputes, Bloomberg reported.

HHIC established a shipyard in Subic, west of Manila, and delivered its first vessel from the yard in July 2008. It uses the Philippine yard to build big ships while its facility in Korea focuses on smaller vessels.

“The weakening demand for new ships is hitting Hanjin Heavy. The Philippines yard hasn’t been generating much business because there are so many delays in delivering the ships to customers,” Park Moo Hyun, analyst at Hana Daetoo Securities Co, was quoted saying.