Daewoo Shipbuilding & Marine Engineering is
likely getting another bailout from state-run banks… despite the government having said
previously that wouldn’t happen. Daewoo will get nearly 6 billion dollars worth
of credit… on the condition that bondholders and other lenders agree to take a stake in
the company in exchange. Kim Hyo-sun reports. The troubled Daewoo Shipbuilding & Marine
Engineering will receive a new bailout package worth 6-point-7 trillion Korean won, or nearly
6 billion U.S. dollars. The shipbuilder’s largest shareholder and
creditor, Korea Development Bank, announced Thursday this second large-scale rescue package
for the company, which has been suffering from serious liquidity problems. Most of Daewoo’s bonds are maturing next month,
and the government says the company will go bankrupt without help. But it will be provided only if all stakeholders
agree to swap debt for equity. In other words,… the shipyard will get new
loans of 2-point-9 trillion won, or about 2-point-6 billion dollars… if lenders and
bondholders agree to exchange this for new shares in the company. The rescue package also includes loans of
some 800 million dollars with an extended maturity of three to five years. The rest of the bailout will come in the form
of bonds from various lenders both state-run and commercial. The government’s last bailout for Daewoo came
in October of 2015. The shipbuilder’s financial conditions have
deteriorated rapidly since then due mainly to losses from delays and difficulties in
building complex offshore facilities. Kim Hyo-sun, Arirang News.