[Courtesy of Daewoo Shipbuilding]
Creditors of Daewoo Shipbuilding & Marine Engineering Co. are set to announce a debt-for-equity swap and other measures, worth three trillion won (2.62 billion US dollars), for the embattled shipbuilder next week, to help one of the country's big three shipyards avoid a possible delisting from the local stock market, industry sources said Tuesday.
The country's two policy lenders -- the Korea Development Bank (KDB) and the Export-Import Bank of Korea (EXIM Bank) -- have said they would provide a combined 4.2 trillion won worth of financial aid to Daewoo Shipbuilding, which breaks down to 2.6 trillion won from KDB and 1.6 trillion won from the other lender.
The financial support includes a debt-for-equity swap and the purchase of stocks to be issued by the shipbuilder.
The KDB has originally planned to spend two trillion won for a debt-for-equity swap and a capital increase for the shipbuilder, and EXIM Bank had not planned to join a capital increase for the shipyard.
But the thorny issue facing the creditors is that Daewoo Shipbuilding's new shipbuilding orders have been smaller than what they had expected. They expect this year's new order for Daewoo Shipbuilding to be around $3 billion, far short of their initial estimate of $10.8 billion.
(Yonhap)
reporter
Park Sae-jin
swatchsjp@ajunews.com
