SPP allowed to issue refund guarantees after 18-month hiatus

SPP allowed to issue refund guarantees after 18-month hiatus

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.

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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