Cash lifeline for SPP

Cash lifeline for SPP

Seoul: Beleagured MR product tanker specialist SPP Shipbuilding has been granted another financial lifeline. The Korean yard, which has been in a debt workout from creditors for nearly five years, has had a $425m credit facility approved.

The money is coming from four of SPP’s main creditors: Export-Import Bank of Korea, Woori Bank, the Korea Trade Insurance Corporation and SGI Seoul Guarantee Insurance.

Some of the money will go on repaying debts while the majority will go on paying for new equipment at the yard.

SPP controls around 16% of the global MR product tanker orderbook. Many cancellations as the crisis kicked on caused it to flirt with bankruptcy.

Sam Chambers

Starting out with the Informa Group in 2000 in Hong Kong, Sam Chambers became editor of Maritime Asia magazine as well as East Asia Editor for the world’s oldest newspaper, Lloyd’s List. In 2005 he pursued a freelance career and wrote for a variety of titles including taking on the role of Asia Editor at Seatrade magazine and China correspondent for Supply Chain Asia. His work has also appeared in The Economist, The New York Times, The Sunday Times and The International Herald Tribune.

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