Creditors of the financially troubled Korean shipbuilder Daewoo Shipbuilding & Marine Engineering Co. (DSME), led by Korea Development Bank, have reportedly cleared the shipbuilder’s USD 4.47 billion-worth self-rescue scheme, Yonhap reports citing industry sources.
As disclosed, the plan would see DSME sell two of its five floating docks aimed at cutting costs and bolstering the yard’s liquidity.
Previous reports said that DSME might have to offload some 14 subsidiaries at home and abroad by 2020 and lay off 1,200 workers in the next five years, along with a cut of up to 20 percent in wages to employees.
Earlier the company informed it would cut its workforce by up to 10,000 by 2019.
In its latest attempt to fight liquidity woes, the ailing shipbuilder decided to sell its Seoul headquarters building for USD 152 million to Koramco REITs Management & Trust Co.
With this approval from creditors South Korean “Big Three” shipbuilders seem to have caught the last train to avoid bankruptcy as they battle industry headwinds.
Specifically, earlier this month Hyundai Heavy Industries (HHI) and Samsung Heavy Industries (SHI) have also received clearance from their respective creditors to go ahead with their self-rescue plans.
World Maritime News Staff