SEOUL, March 23 South Korea's financial
regulator is considering a new bailout package for Daewoo
Shipbuilding & Marine Engineering Co Ltd that
includes haircuts for bondholders and fresh loans, the Wall
Street Journal reported on Thursday, citing people directly
involved in the matter.
South Korea's Financial Services Commission, is considering
asking the shipbuilder's creditors to write off some of its debt
and asking banks to lend it another 3 trillion won ($2.69
billion), the WSJ reported.
Daewoo's two largest state creditors, Korea Development Bank
and the Export-Import Bank of Korea, are expected to decide on a
restructuring plan as early as Thursday, the WSJ reported.
The FSC, Daewoo Shipbuilding and Korea Development Bank
Daewoo Shipbuilding reported a 2016 net loss of 2.7 trillion
won, down from a net loss of 3.3 trillion in 2015.
South Korea's top three shipbuilders, including Daewoo
Shipbuilding, submitted plans last year to sell up to 4.8
trillion won in combined assets and find 3.6 trillion won
through cost cuts as part of government-led efforts to
restructure the industry.
($1 = 1,116.2700 won)
(Reporting by Joyce Lee; Editing by Eric Meijer)