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The Korea Herald
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THE INVESTOR
March 28, 2024

Industrials

NPS delays decision on DSME’s rescue plan

  • PUBLISHED :April 11, 2017 - 17:06
  • UPDATED :April 11, 2017 - 17:33
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[THE INVESTOR] The National Pension Service, one of key creditors of ailing Daewoo Shipbuilding & Marine Engineering, said on April 11 it needs more time to evaluate the shipbuilder’s debt restructuring plan.

The pension fund had planned to hold an investment meeting on the day to decide on the 2.9 trillion won (US$2.60 billion) rescue package proposed by the two main creditors -- Korea Development Bank and Export-Import Bank of Korea. 




The NPS holds 390 billion won or almost 30 percent in DSME’s corporate bonds, of which 193 billion won is set to mature on April 21.

The fund will have to make a decision on the rescue plan by April 17 along with other key stakeholders. If they fail to reach an agreement, the government will initiate its own restructuring plan, a combination of workout and court protection programs.

The local credit rating firms NICE Investors Services estimate that the NPS will bear some 268 billion won worth of valuation losses under the creditors’ debt restructuring plan which could further rise to some 400 billion won under court receivership.

Earlier on April 9, NPS urged KDB to further cut the equity capital of the shipbuilder, revise the price for debt-equity swap, and repay the company’s debt that is set to mature later this month. However, the policy bank refused to accept the demands on April 10.

By Park Ga-young (gypark@heraldcorp.com)

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