DSME’s top bondholder and creditor finally find common ground to save the yard

A deal has been reached to save one of the world’s largest shipbuilders. Doubts had been growing this month that key parties would agree to Daewoo Shipbuilding & Marine Engineering’s (DSME) latest debt restructuring plan. However, today the National Pension Service (NPS), DSME’s major bondholder, and the yard’s top creditor, Korea Development Bank (KDB) have managed to come to an arrangement to save the troubled company.

“We found common ground thanks to KDB’s willingness to negotiate, as the main shareholder has shown a strong will to revive the shipyard and minimise losses for the fund,” a senior NPS official told the Korea Herald today.

DSME’s debt-to-equity scheme is now being renegotiated.

DSME has been hit hard by a drop in orders for new ships and offshore structures as well as a huge accounting scandal.

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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