Samsung Heavy Industries’ self-rescue plan submitted on Tuesday has been rejected by its lead creditor, Korea Development Bank, multiple sources in South Korea have told local newswire Yonhap. The plan sought to roll $2.4bn of debt. KDB has asked SHI to deliver a more radical plan and to get help from parent, Samsung Group.
“We will ask (the shipbuilder) to include measures that involve liquidity support from Samsung Group as we judged that voluntary cost-cutting and fund-raising efforts from Samsung Heavy Industries are makeshift,” a KDB official said.
SHI’s original plan included cutting its workforce, reducing the number of active dockyards, and selling assets.
Samsung Group reportedly is reluctant to come to the rescue of the shipyard at the moment.
Meanwhile, another endangered Korean giant yard, Daewoo Shipbuilding & Marine Engineering (DSME), will unveil a set of additional restructuring measures later today as the government and its creditors pressed it to map out stronger self-rescue measures.
