Creditors of South Korea’s Samsung Heavy Industries have ordered the shipyard to produce a self-restructuring plan, reports say.
The state-run Korea Development Bank, Samsung Heavy’s main creditor, told Yonhap the shipyard is expected to announce restructuring and cost-cutting measures “soon”.
Last week, Samsung Heavy received another huge blow to its dwindling orderbook when Royal Dutch Shell reportedly cancelled plans for three FLNG units worth a combined $4.6bn.
As newbuilding activity falters, South Korea’s Financial Services Commission has been pressuring the country’s shipyards ramp up self-restructuring efforts, make redundancies and sell off non-core assets.
Creditors of Daewoo Shipbuilding & Marine Engineering (DSME) and Hyundai Heavy Industries (HHI) are pressing the shipyards to undertake further action to restructure their ailing businesses.
Meanwhile, state-run lenders Korea Development Bank (KDB) and the Export-Import Bank of Korea (Korea Eximbank) are reportedly running the risk of collapse if they do not receive a cash injection from the government to help them finance the restructuring of some of the country’s debt-ridden carriers and shipyards.
The two banks are financing the restructuring of Hanjin Shipping, Hyundai Merchant Marine (HMM) and DSME, among other companies.