April 26, 2024
Industrials
Ailing DSME to receive fresh funding
[THE INVESTOR] Ailing Daewoo Shipbuilding & Marine Engineering is set to receive 500 billion won (US$448 million) in fresh loans from its creditors later this month, industry sources said on May 17.
The financial aid, part of the second bailout fund drawn up by its creditors, will be spent on payment to subcontractors and to employees, they said.
In March, the creditors led by the KDB announced a fresh rescue package for the ailing shipbuilder that has been suffering from severe liquidity problems over heavy losses in its offshore projects.
Under the rescue package, DSME will receive new loans worth 2.9 trillion won, with lenders and bondholders swapping 2.9 trillion won of debt for new shares in the shipbuilder.
Bondholders will also give a three-year grace period for the repayment of the remaining debt.
By Alex Lee and newswires (alexlee@heraldcorp.com)
The financial aid, part of the second bailout fund drawn up by its creditors, will be spent on payment to subcontractors and to employees, they said.
In March, the creditors led by the KDB announced a fresh rescue package for the ailing shipbuilder that has been suffering from severe liquidity problems over heavy losses in its offshore projects.
Under the rescue package, DSME will receive new loans worth 2.9 trillion won, with lenders and bondholders swapping 2.9 trillion won of debt for new shares in the shipbuilder.
Bondholders will also give a three-year grace period for the repayment of the remaining debt.
By Alex Lee and newswires (alexlee@heraldcorp.com)
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