DSME Gets Fresh $6B Bail Out
Korea's battered Daewoo Shipbuilding & Marine Engineering (DSME) is all set to receive a new bailout package worth $6 billion, after court rejected appeal from a group of individual investors.
According to Pulse news, government-led bailout package that required all creditors and bondholders to agree to push back the maturity, lower borrowing rates, and convert debt into equity according to their share had been put on hold as some of the individual investors appealed to a Busan court.
The sources said that the rescheduling scheme is now set to go, and half of its existing debt would be converted into equity in DSME by next month to significantly push down the debt ratio to 300 percent from 2,732 percent as of the end of December.
DSME would be able to speed up its normalization efforts upon receiving fresh funding of 2.9 trillion won ($2.6 billion) pledged by state lenders and rescheduling in existing 3.9 trillion won debt through debt-to-equity swap, rollover and lower rates from all private lenders and bondholders.
