Korea Development Bank (KDB), Daewoo Shipbuilding & Marine Engineering’s (DSME) main creditor, is looking to offload its controlling stake in the financially struggling shipyard as soon as possible.
KDB and other creditors announced today plans to provide a further KRW4.2trn ($3.68bn) as a rescue package for DSME, which is likely to reveal another serious quarterly loss soon of up to KRW3trn.
KDB has a 31.5% stake in the company which has been hit hard by the offshore downturn as well as alleged accounting malpractices.
KDB said in a statement it would not seek a formal creditor-led restructuring or court-ordered bankruptcy as DSME employs so many people.
Many creditor banks in Korea are looking to offload stakes in shipbuilders at the moment, including Woori Bank’s holding in SPP Shipbuilding.