13 DSME Execs Offer to Quit amid Huge Losses

Thirteen executive officers and advisers of the Korean shipbuilder Daewoo Shipbuilding and Marine Engineering (DSME) have offered their resignations after the company posted its biggest quarterly loss at thr rnd of July, Bloomberg reports.

Namely, Daewoo posted an operating loss of KRW 2.39 trillion (USD 2.1 billion), confirming media predictions that saw the shipbuilder’s shares plunge by 30 % earlier in July.

DSME shares have made a substantial comeback after the Korean shipbuilder stepped up its restructuring efforts, which are to include disposing of under-performing subsidiaries.

The shares’ value shot up following announcements that Korea Development Bank, DSME’s largest shareholder, would buy KRW 1 trillion (USD 863.4 million) of equity and offer 1 trillion won in new loans.

As informed, the resignation of the said executives should not influence the shipbuilder’s seven-member board.

South Korean shipbuilding giants Hyundai Heavy Industries (HHI) and Samsung Heavy Industries (SHI) also suffered extensive losses in the second quarter of 2015 amid dwindling interest in ordering new ships and a downturn in the offshore oil and gas industry.

World Maritime News Staff

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