By Joyce Lee SEOUL, April 18 (Reuters) - South Korea's Daewoo Shipbuilding & Marine Engineering Co Ltd has won near unanimous agreement from bondholders to swap their debt for equity, meeting a condition that unlocks a $2.6 billion bank bailout for the world's biggest shipbuilder. Daewoo won approval from over 96 percent of bondholders at two meetings on Tuesday and … [Read more...]
Daewoo Shipbuilding Bondholders Accept Bailout Plan Following Pension Fund Agreement
By Joyce Lee SEOUL, April 17 (Reuters) - South Korea's Daewoo Shipbuilding & Marine Engineering Co Ltd on Monday won near unanimous approval for a debt-to-equity swap plan in the first three of five bondholder meetings, as the world's largest shipbuilder battles to stay afloat. The votes were held hours after Daewoo's biggest bondholder, the National Pension Service … [Read more...]
DSME Bailout Plan Cleared by Pension Fund
By Jung Park and Kyunghee Park (Bloomberg) -- Daewoo Shipbuilding & Marine Engineering Co., the world’s largest shipbuilder, won a reprieve from major bondholder National Pension Service and other lenders, helping avert a payment crisis that had threatened to almost shut the company. The NPS agreed to restructure 1.55 trillion won ($1.4 billion) of bonds issued … [Read more...]
Time Running Out for Top Shipbuilder as Lenders Argue
By Abhishek Vishnoi, Kyunghee Park and Jung Park (Bloomberg) -- South Korea’s National Pension Service has a decision to make -- help the world’s biggest shipmaker survive, or let it die. Creditors to Daewoo Shipbuilding & Marine Engineering Co. are due to meet next week to decide whether to convert some of the 1.55 trillion won ($1.4 billion) of bonds into … [Read more...]
Opinion: Zombie Companies (Like DSME) Threaten to Eat Asia’s Future
By Michael Schuman (Bloomberg View) -- Any horror aficionado knows that the only good zombie is a dead zombie. Don’t risk trying to bring one back to life. It'll just come back to bite you. Apparently, policymakers haven’t watched enough B-movies. Worried about layoffs and soured loans, governments and banks across Asia continue to dole out cheap financing and other … [Read more...]
DSME CEO Says Should Step Down if Shipbuilder Can’t Turn Profit
By Joyce Lee SEOUL, March 24 (Reuters) - Daewoo Shipbuilding & Marine Engineering Co Ltd's CEO Jung Sung-leep said he believes he should step down from the top position if the cash-strapped South Korean firm is unable to turn a profit this year. South Korean state banks have said they are preparing a fresh $2.6 billion bailout for Daewoo Shipbuilding, which has racked … [Read more...]
DSME Gets Fresh $2.6 Billion Bailout
By Joyce Lee SEOUL, March 23 (Reuters) - South Korean state banks are preparing a fresh $2.6 billion bailout for floundering Daewoo Shipbuilding & Marine Engineering Co Ltd, which has built up huge losses from offshore projects and risks missing debt repayments. Daewoo, Hyundai Heavy Industries and Samsung Heavy Industries are South Korea's top shipbuilders - a … [Read more...]