Eximbank, KDB may bail out Doosan

The state-run Korea Development Bank (KDB) and the Export-Import Bank of Korea (Eximbank) said Monday they may provide additional financial assistance worth 800 billion won (US$649.8 million) to Doosan Heavy Industries & Construction in their latest move to help normalize the nation’s largest power equipment maker.

“We decided to accept Doosan Heavy’s final self-rescue plans,” KDB and Eximbank said in a joint statement.

A KDB official said Doosan Heavy plans to use about 500 billion to pay back bonds with warrants maturing in May.

The move comes after Doosan Group submitted Doosan Heavy’s final self-rescue plans worth more than 3 trillion won to the creditors.

The self-rescue plans include selling off its non-core assets, a rights issue and salary reductions for executives.

In March, the company opened a 500 billion-won credit line with the KDB and Eximbank, respectively, but the money is almost depleted, according to KDB.

Last week, Eximbank converted $500 million worth of dollar-denominated debt sold by Doosan Heavy into the loans, as the power equipment maker cannot repay the debt set to mature this week.

Doosan Heavy posted accumulated net losses worth 2.68 trillion won from 2014 through 2019.

Yonhap