HHI management improvement plan gets green light

JULY 26, 2016 — The world's largest shipbuilder, South Korea's Hyundai Heavy Industries (HHI) reports that accountancy firm Samil PwC has told it that its 3.5 trillion won worth management improvement plan is good enough for HHI to make operating profits and secure liquidity even in the worst case scenario.

The announcement is the result of due diligence that had been conducted by Samil PwC , a local member of the global accounting firm PwC, for 10 weeks from May 23 this year at the request of HHI's main creditor banks including the Export-Import Bank of Korea and KEB-Hana Bank.

According to the analysis of Samil PwC, with faithful execution of the proposed management plan, HHI would be able to make operating profits, secure enough liquidity and cut down considerable debt each year until 2020.

An HHI official said, "The green light from Samil PwC for our management improvement plan today will help us greatly to regain the trust of the market and financial sector."

An official from the Export-Import Bank of Korea who attended the due diligence briefing session held today added, "We see the due diligence result today will help creditor banks of HHI to take a positive stance on RG issuance for new shipbuilding orders HHI expects to win down the road."

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