Creditors approve restructuring plans of South Korea’s largest yards

Creditors approve restructuring plans of South Korea’s largest yards

South Korea’s largest two shipyards – Hyundai Heavy Industries (HHI) and Samsung Heavy Industries (SHI) – have had their restructuring plans approved by creditors.

HHI’s KRW3.5trn ($2.9bn) plans include selling stocks and non-core assets and cutting its workforce, which will reduce its debt-to-equity ratio to below 100% by 2018.

SHI’s $1.2bn plans are similar albeit on a smaller scale.

Daewoo Shipbuilding & Marine Engineering (DSME), South Korea’s third largest yard, is also going through a painful restructuring.

Earlier this week it emerged that the combined debts of the nation’s nine largest yards had soared above KRW100trn.

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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