Daewoo Shipbuilding & Marine Engineering (DSME), one of the world’s largest shipbuilders, has been saved from financial oblivion. Key bondholder, the National Pension Service has agreed to restructure KRW1.55trn ($1.4bn) of DSME bonds.
The yard’s top lenders the Korea Development Bank (KDB) and the Export-Import Bank of Korea said last month they would provide KRW2.9trn in additional loans and swap about KRW1.6trn of debt for equity if other creditors and bondholders agreed to convert up to 80% of their debt and extend maturities for remaining loans by as much as five years.
DSME has recorded losses for four years in a row, hit by a drop in new orders for ships as well as a massive multi-billion dollar accounting fraud.
