HHI turnaround plan is approved

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HHI turnaround plan is approved

Samil PwC, the local unit of global accounting firm PricewaterhouseCoopers, has approved a 3.5 trillion won ($3 billion) turnaround plan by Hyundai Heavy Industries (HHI), the company said Tuesday.

Samil PwC has been rolling out a two-step management evaluation of the world’s top shipbuilder since May 23, analyzing the financial health of HHI based on its income statements and cash flow. The financial checkup was initiated upon the request of the indebted shipbuilder’s main creditors including KEB Hana Bank and the Export-Import Bank of Korea.

“Even under the premise of a worst-case scenario, HHI will not have any problem generating profit,” a Samil PwC spokesperson said.

After a 10-week evaluation, the accounting firm concluded Tuesday that as long as HHI faithfully sticks to the schedule of its turnaround plan submitted to creditors, the shipbuilder will be able to generate operating profit and secure enough liquidity in the coming years.

“The green light from Samil PwC for our turnaround plan today will greatly help us regain the trust of the market and financial sector,” an HHI spokesperson said.

The shipbuilder plans to sell its investment securities and real estate as well as trim its workforce. HHI said it hopes to downsize its debt-to-capital ratio to below 100 percent from the current 134 percent by 2018.

BY JIN EUN-SOO [jin.eunsoo@joongang.co.kr]
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