DSME Seeks Court Approval for Debt Rescheduling

Image Courtesy: DSME

After collecting the necessary consents for its rescue plan, the financially troubled shipbuilder Daewoo Shipbuilding & Marine Engineering (DSME) filed for a court approval for debt rescheduling on April 20, Yonhap News Agency said.

An approval from the South Korea’s court would pave the way for the shipbuilder’s much needed financial boost of KRW 2.9 trillion, proposed by its main creditors Korea Development Bank (KDB) and Export-Import Bank of Korea (KEXIM).

The court is expected to make the decision on the matter in two weeks. If all of the necessary approvals are granted, the financing could be made in early May, Yonhap informed.

DSME’s main debt holder, National Pension Service (NPS), which holds some 30 percent of the company’s corporate bonds, approved of the debt rescheduling on April 17. Later the same day, the company’s remaining investors gave their nod to the debt rescheduling proposal.

The latest restructuring plan, revealed in late March 2017, sets out three key principles – debt restructuring should come first, financial assistance should follow later, and all stakeholders should bear the burden of losses.

Under the new measures, half of the shipyard’s corporate bonds and commercial papers would be converted into equity with the rest being rolled over.

In October 2015, KDB and KEXIM injected a KRW 4.2 trillion rescue package into DSME, however, despite the financial aid and the company’s stringent self-rescue efforts, the shipbuilder suffered a net loss of KRW 2.7 trillion last year as its debt ratio soared to 2,732%.

World Maritime News Staff

Share this article

Follow World Maritime News

In Depth>

Events>

<< Nov 2017 >>
MTWTFSS
30 31 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 1 2 3

Maritime Information Warfare 2017

Maritime Information Warfare will focus on the growing need for navies to develop their information exploitation capabilities…

read more >

INTERNATIONAL GREEN SHIPPING AND TECHNOLOGY SUMMIT

The Summit will gather key marine experts and companies around the globe which have a big influence in the industry…

read more >

The CWC 18th Annual World LNG Summit & Awards Evening

The CWC World LNG Summit will continue to give you access to premium networking opportunities as it brings together the who’s who…

read more >

Marintec China 2017

The largest maritime event in Asia Pacific, Marintec China connects maritime professionals from the entire shipbuilding supply chain together.

Over the years, Marintec China has grown to reflect the size and importance of the Asian maritime market. 2015 event is another record-breaking edition with the largest exhibition area and the highest number of industry professionals attending ever. The encouraging figures proven that China remains one of the major shipbuilding nations and Marintec China has been the most authoritative platform in Asia.

With the maritime industry facing great opportunities but also many challenges, it is important for the industry to connect and engage more to ultimately win new business in globally-significant markets. A visit to Marintec China is a great way to learn about the latest technology and innovation of the supply industry, a platform for industry professional to meet face to face, make connection and do business.

Marintec China is poised to be the definitive event and is undoubtedly a must-attend for all involved in the maritime industry.

Marintec China will be held from 5 to 8 December 2017 at the Shanghai New International Expo Centre in Shanghai, China and continue its dedication to serve as the “LEADING” platform “CONNECTING” the community and “STRENGTHENING” the maritime industry.

Marintec China offers the perfect opportunity for companies serving the maritime market to showcase their innovations, products and services to a wide audience. A platform for face to face meetings in business, creating new relationships and consolidating existing ones.

More info

read more >