The latest fund raising plan followed self-rehabilitation measures already worth KRW5.3trn that include slashing wages and manpower, and downsizing facilities.
Jung said DSME will secure KRW700bn including KRW300bn through the sale of company housing for its employees in Geoje, South Gyeongsang.
With the additional measures, the total self-rehabilitation amount DSME has vowed to provide will reach KRW6trn, and the aim is to complete implementation of all funds by 2018.
Jung was reported saying that DSME is targeting to raise KRW7trn in annual sales with KRW4trn from the shipbuilding business, KRW2trn from offshore drilling and KRW1trn from special shipbuilding by 2018.
Korea Development Bank (KDB), the main creditor of DSME, meanwhile said it will accept debt-for-equity swaps worth at least KRW1.6trn in order to keep DSME afloat with sufficient liquidity.
The debt-for-equity swap, which allows conversion of a company’s debt into equity held by the lender, is part of the KRW4.2trn injection by creditors including KDB. Of the total, KDB will support with KRW2.6trn and the Export-Import Bank of Korea with KRW1.6trn.
Copyright © 2024. All rights reserved. Seatrade, a trading name of Informa Markets (UK) Limited. Add Seatrade Maritime News to your Google News feed.
