SPP Shipbuilding, which is likely to be sold soon, has celebrated a landmark moment in its rehabilitation. For the first time since 2014, the Korean yard is now able to issue refund guarantees. Its creditors, led by Woori Bank, had denied the yard refund guarantees for 18 months, leading employees in recent months to warn that its orderbook could dry out by the end of 2016. The yard’s creditor banks will only be issuing guarantees for contracts they deem are profitable.
SPP is a specialist in product carriers and has three yards dotted around South Korea.
Last week, Samla Midas Group (SM Group), the parent of Korea Line Corp, emerged as the sole bidder for SPP. Creditors are scheduled to announce whether or not they have accepted the bid this Wednesday.