April 27, 2024
Industrials
Creditors set to offer fresh funds to DSME
[THE INVESTOR] Creditors of cash-strapped Daewoo Shipbuilding & Marine Engineering are set to inject fresh funds into the embattled shipyard next week, industry sources said on May 31.
According to the sources, the state-run Korea Development Bank-led creditors are expected to start injecting 500 billion won (US$444 million) in cash into the shipbuilder in the coming days as the shipyard could face a cash shortage next month.
Originally, the creditors planned to extend financial assistance to DSME before the end of the month, but their plan has been drawn out as an individual investor has filed a suit against a court decision for the 2.9 trillion-won debt rescheduling program.
The financial aid, part of the second bailout fund drawn up by its creditors, will be spent on payments to subcontractors and to employees, the sources said.
By Alex Lee and newswires (alexlee@heraldcorp.com)
According to the sources, the state-run Korea Development Bank-led creditors are expected to start injecting 500 billion won (US$444 million) in cash into the shipbuilder in the coming days as the shipyard could face a cash shortage next month.
Originally, the creditors planned to extend financial assistance to DSME before the end of the month, but their plan has been drawn out as an individual investor has filed a suit against a court decision for the 2.9 trillion-won debt rescheduling program.
The financial aid, part of the second bailout fund drawn up by its creditors, will be spent on payments to subcontractors and to employees, the sources said.
By Alex Lee and newswires (alexlee@heraldcorp.com)
