DSME to complete debt-for-equity swap with bondholders next month

Financially troubled South Korean yard Daewoo Shipbuilding & Marine Engineering (DSME) is expected to secure at least KRW800bn ($692m) in cash through additional debt-for-equity swaps, sources told Korean media Yonhap News.

In March, DSME’s top lenders Korea Development Bank and the Export-Import Bank of Korea said 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.

The plan was put on hold due to an individual bondholder filed a lawsuit against the debt rescheduling program.

According to the sources, DSME is planning to start the process of swapping debts for equity with bondholders next month as the court has rejected the bondholder’s lawsuit.

By the end of June, DSME had already secured KRW2.1trn in cash through debt-for-equity swaps with bank creditors.

Jason Jiang

Jason is one of the most prolific writers on the diverse China shipping & logistics industry and his access to the major maritime players with business in China has proved an invaluable source of exclusives. Having been working at Asia Shipping Media since inception, Jason is the chief correspondent of Splash and associate editor of Maritime CEO magazine. Previously he had written for a host of titles including Supply Chain Asia, Cargo Facts and Air Cargo Week.
Back to top button