April 26, 2024
Industrials
DSME CP holders like to accept bailout plan
[THE INVESTOR] Korea’s top financial regulator said on April 18 that he expects holders of commercial papers issued by Daewoo Shipbuilding & Marine Engineering to agree to a debt-for-equity swap plan this week.
If they accept the bailout plan, state-run creditor banks will begin injecting fresh funds into DSME to keep the ailing shipbuilder afloat, Financial Services Commission Chairman Yim Jong-yong told reporters.
Yim made the remarks after DSME received final approval from its bondholders for the painful debt-for-equity swap plan earlier in the day, clearing a key hurdle to receive the fresh funds.
“If there is an agreement from CP holders, a fresh cash injection for DSME will be implemented,” said Yim.
Under the rescue package, DSME will receive new loans worth 2.9 trillion won if lenders and bondholders agree to swap 2.9 trillion won of debt for new shares in the shipbuilder.
By Alex Lee and newswires (alexlee@heraldcorp.com)
If they accept the bailout plan, state-run creditor banks will begin injecting fresh funds into DSME to keep the ailing shipbuilder afloat, Financial Services Commission Chairman Yim Jong-yong told reporters.
Yim made the remarks after DSME received final approval from its bondholders for the painful debt-for-equity swap plan earlier in the day, clearing a key hurdle to receive the fresh funds.
“If there is an agreement from CP holders, a fresh cash injection for DSME will be implemented,” said Yim.
Under the rescue package, DSME will receive new loans worth 2.9 trillion won if lenders and bondholders agree to swap 2.9 trillion won of debt for new shares in the shipbuilder.
By Alex Lee and newswires (alexlee@heraldcorp.com)
