Korea’s pension fund has accepted a bailout
package for Daewoo Shipbuilding and Marine Engineering,… paving the way for one of
the world’s largest shipbuilders to stay afloat despite being unprofitable in recent years. Hwang Ji-hye has more. Korea’s National Pension Service has given
the greenlight to a bailout plan for the troubled Daewoo Shipbuilding and Marine Engineering. The NPS, the shipbuilder’s major creditor,
agreed on Monday… to accept a debt-to-equity swap proposal. The NPS said… approving the bond restructuring deal will
help raise the organization’s profits in the long run. The acceptance of the NPS, which holds 30
percent of the company’s bonds, does NOT mean the debt-ridden shipbuilder has the final
approval for its rescue plan. Enough remaining creditors will still need
to vote for the debt-to equity-swap deal in a series of meetings over two days that started
Monday. There… bondholders will consider whether
to agree to a 50 percent debt-to equity swap of roughly one-and-a-half trillion won, or
1-point-3 billion U.S. dollars,… and a three-year grace period on the remaining debt… under
the condition that state banks will provide Daewoo with an additional 2-point-6 billion
dollars. Pundits say, though,… that the pension service’s
decision has paved the way for other creditors to keep one of the world’s largest shipbuilders
running. “We can say that Daewoo is gaining time to
go through restructuring while getting away from the immediate liquidity crisis.” As the shipbuilder inches closer to a bailout,
the focus now is on how fast Daewoo will be able to normalize its business operations
and make the most of the massive amount of money poured into it. Hwang Ji-hye, Arirang News.