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.