April 25, 2024
Industrials
DSME chief urges workers to share pain
[THE INVESTOR] The chief of ailing Daewoo Shipbuilding & Marine Engineering urged its workers on March 29 to accept a pay cut and other bold restructuring moves to revive.
In a message delivered through an in-house broadcast to its workers, Jung Sung-leep, president of DSME, said this is the last chance for him and his workers to survive.
“Our creditors and shareholders demand that we share pain and implement self-rescue efforts,” Jung said, adding that the measures include a return of 10 percent of their salaries and no labor strike.
Last week, the creditors of DSME, led by the state-run Korea Development Bank, announced a fresh rescue package worth 6.7 trillion won ($6.02 billion) for the ailing shipbuilder, but only if all stakeholders agree to a debt-for-equity swap plan.
Bondholders are also required to give a three-year grace period on the repayment of the remaining debt.
DSME is required to cut 25 percent of its personnel costs and slash its workforce by 1,000.
By Alex Lee and newswires (alexlee@heraldcorp.com)
In a message delivered through an in-house broadcast to its workers, Jung Sung-leep, president of DSME, said this is the last chance for him and his workers to survive.
“Our creditors and shareholders demand that we share pain and implement self-rescue efforts,” Jung said, adding that the measures include a return of 10 percent of their salaries and no labor strike.
Last week, the creditors of DSME, led by the state-run Korea Development Bank, announced a fresh rescue package worth 6.7 trillion won ($6.02 billion) for the ailing shipbuilder, but only if all stakeholders agree to a debt-for-equity swap plan.
Bondholders are also required to give a three-year grace period on the repayment of the remaining debt.
DSME is required to cut 25 percent of its personnel costs and slash its workforce by 1,000.
By Alex Lee and newswires (alexlee@heraldcorp.com)
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