The fate of ailing Dong Ah Construction may stay in limbo for a while. This after the government has asked a court to postpone its ruling on whether to liquidate the builder.

The government fears Dong Ah's liquidation would likely halt a multi-billion dollar waterway project in Libya and damage the international credibility of South Korean firms.

The Construction and Transportation Ministry said it has also asked the court see to it that the Libyan project will be completed even if the company is liquidated. On Friday, the ministry notified the Libyan government that it will make sure that the Great Man-made Waterway project will be completed even if Dong Ah Construction goes under.

The nation's fifth largest builder was placed under court receivership in November.

On Saturday, a court-appointed auditor recommended that the ailing company be liquidated, citing its financial condition. Dong Ah disputes the auditor's recommendation, arguing that it can survive under court receivership.

A company under court receivership can have its debts frozen temporarily.