DSME main creditors set debt adjustment talks today
Major lenders of the embattled Daewoo Shipbuilding & Marine Engineering are scheduled to meet today to discuss debt adjustment of the shipbuilding company.
The agreement among the banks including KB Kookmin Bank, Woori Bank and KEB Hana Bank and other corporate bondholders like National Pension Service holds the key to the success of the latest government bailout plan.
DSME borrowed 700 billion won ($626 million) in total from local banks. Under the proposal, 80 percent of that will turn into equity, while payment of the remaining 20 percent will be delayed for five years.
Major creditors Korea Development Bank and Export and Import Bank of Korea are also scheduled to attend.
Led by the Financial Services Commission, the two state-backed banks devised the latest bailout plan and will raise 2.9 trillion won half and half in emergency loans for DSME.
Analysts said that the commercial banks are reluctant to shoulder the burden, but will likely give in because of the pressure of the Financial Services Commission, the country’s top financial regulatory agency.
The regulator said that DSME could head into court receivership if the creditors fail to reach an agreement.
By Park Eun-jee