DSME gets $6 billion bail out
Written by Nick Blenkey
MARCH 23, 2017 — Korea’s battered Daewoo Shipbuilding & Marine Engineering (DSME) is to receive a new bailout package worth 6.7 trillion Korean won, or nearly 6 billion U.S. dollars.
Arirang News reports that the shipbuilder’s largest shareholder and creditor, Korea Development Bank, announced this latest rescue package today.
The aid will be given only if all stakeholders agree to swap debt for equity. Arirang reports that the shipyard will get new loans of 2.9 trillion won, or about 2.6 billion dollars if lenders and bondholders agree to exchange this for new shares in the company.
The rescue package also includes loans of some 800 million dollars with an extended maturity of three to five years.
The rest of the bailout will come in the form of bonds from various lenders both state-run and commercial.
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