The next few years will prove incredibly hard for Daewoo Shipbuilding & Marine Engineering’s (DSME) balance sheet, a new due diligence report warns.
Auditor Samjong KPMG is projecting a 2018 liquidity shortage at the restructuring Korean yard of KRW4.55trn ($4.08bn).
Creditors have recently pumped KRW4.2trn into the shipbuilding major, which has been hit by the slowdown in global ordering as well as a massive accounting fraud.
Samjong KPMG predicts DSME’s cash shortage will hit KRW2.34trn this year and KRW3.64trn in 2017. It suggests 2018 will the be the worst on the back of declining orders and maturing debts.
Separately, in the on running fraud investigation that saw more than $4bn pilfered from the yard in recent years, prosecutors today summoned the current CFO of the yard, alleging he also cooked the books. Two former CEOs and a former CFO have been indicted while the former head of lead creditor Korea Development Bank (KDB) is also under investigation.