Korea Development Bank Increases DSME Stake

Image Courtesy: DSME

The state-run Korea Development Bank (KDB) has increased its stake in the South Korean shipbuilder Daewoo Shipbuilding & Marine Engineering Co. (DSME), according to a stock exchange filing.

Namely, KDB, one of DSME’s main creditors, increased its ownership in the shipbuilder from 49.74 percent to 79.04 percent through a debt to equity swap.

In November 2016, DSME’s creditors KDB and the Export-Import Bank of Korea unveiled their intentions to financially support the shipbuilder with KRW 2.8 trillion.

Under the plan, KDB intended to convert KRW 1.8 trillion of debt into equity. The bank previously converted around KRW 400 billion worth of loans into DSME stocks.

The company’s second creditor, the Export-Import Bank of Korea, was expected to buy KRW 1 trillion worth of bonds that would be sold by the shipbuilding company.

The creditors earlier said that the financial aid would be provided under the condition that the company’s labor union accepts the restructuring scheme, introduced in order to prevent the shipbuilder’s delisting from the stock market.

During the first nine months of 2016, Daewoo Shipbuilding & Marine Engineering’s net loss shrunk to KRW 1.42 trillion from a net loss of KRW 2.19 trillion reported in the nine-month period in 2015.

World Maritime News Staff

Share this article

Follow World Maritime News

In Depth>

Events>

<< Oct 2017 >>
MTWTFSS
25 26 27 28 29 30 1
2 3 4 5 6 7 8
9 10 11 12 13 14 15
16 17 18 19 20 21 22
23 24 25 26 27 28 29
30 31 1 2 3 4 5

Europort 2017

The 38th edition of Europort will take place from 7-10 November 2017 in Rotterdam Ahoy. Established as one of the world’s leading maritime…

read more >

Mozambique Gas Summit & Exhibition

Mozambique Gas Summit & Exhibition is recognised as the leading strategic meeting for Mozambique’s gas industry. Working in partnership…

read more >

FCCA Cruise Conference & Trade Show

The ​FCCA ​Conference ​is ​a four-day ​event ​designed ​to ​foster ​a ​better ​understanding ​of ​the ​inner ​workings ​of ​the ​cruise…

read more >

Bulk Liquid Storage Europe 2017

The event will cover current key challenges and issues faced by the industry and provide in depth discussions and analysis of today`s…

read more >