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Regulator ponders debt write-offs, $2.7 bln in new loans for Daewoo Shipbuilding-WSJ
March 23, 2017 / 12:18 AM / 8 months ago

Regulator ponders debt write-offs, $2.7 bln in new loans for Daewoo Shipbuilding-WSJ

SEOUL, March 23 (Reuters) - 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 declined comment.

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

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