Samsung Heavy Industries Co., a major South Korean shipyard, is seeking to raise much needed funds for its ongoing restructuring efforts by issuing additional shares, amending its own rules to allow new offerings, company officials said Friday.

At a meeting held earlier Friday, the company's shareholders agreed to revise the company's article of association and raise the number of shares allowed to be issued to 500 million from the current 300 million.

The move came as the company has already issued over 230 million shares.

The shipbuilder, along with its local peers, is undergoing government-initiated restructuring, while a sharp decline in new ship orders is creating serious problems for the already cash-strapped firm.

An earlier assessment by a local accounting firm suggested Samsung Heavy may need up to 1.6 trillion won ($1.44 billion) to pay off its maturing debts and keep the company running.

While meeting with reporters on Wednesday, company chief Park Dae-young said the shipbuilder sought to raise about 1 trillion won through the proposed secondary offering.

The board of directors was set to decide how and when the new shares will be offered, company officials noted.

Those close to the process, however, said there will likely be no public offering and that most of the new shares will be offered to the company's affiliates that include Samsung Electronics Co. and Samsung Life Insurance Co. (Yonhap)