KDB keen to offload DSME majority stake

KDB keen to offload DSME majority stake

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.

 

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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