DSME Deal Non-starter
The creditors of Daewoo Shipbuilding & Marine Engineering (DSME) still remain undecided over afor the shipyard's latest deal, further complicating troubles for one of the country's major shipyards, Yonhap reported. DSME clinched a US$250 million deal to build three very large crude carriers (VLCCs) on April 4. Under the deal with Maran Tankers Management, a unit of Greece's largest shipper Angelicoussis Shipping Group, Daewoo Shipbuilding will deliver the 318,000-ton VLCCs by 2018. The deal came as the shipyard is suffering from a sharp decline in new orders amid a protracted industrywide slump. "We are still talking about (this), and the state-run creditors and commercial lenders have to narrow their differences on the terms," a source said, asking not to be named.
SOS from Hanjin Shipping
The creditors' extended help is crucial for survival of Hanjin Shipping Co as its negotiations with owners of chartered ships over a cut in leasing rates and to postpone debt repayments to foreign creditors made significant progress, says the cash-strapped firm. Creditors of Hanjin Shipping, led by the state-run Korea Development Bank, have threatened to put the shipper under receivership, saying its fresh self-rescue plan is far shy of demands. Local banks' credit exposure to Hanjin is estimated at 1.02 trillion won (US$915 million), but they have already set aside sufficient provisions against the loans. The state-run Korea Development Bank (KDB), KEB-Hana Bank and other banks extended a total of 1.02 trillion won to the country's No. 1 shipper, says Yonhap quoting un-named sources.
Samil PwC Okays Hyundai's Management Improvement Plan
Hyundai Heavy Industries (HHI) is notified by Samil PwC, a local member of the global accounting firm PwC, that its 3.5 trillion won worth management improvement plan is good enough for HHI to make operating profits and secure liquidity even in the worst case scenario. The announcement is the result of due diligence that had been conducted by Samil PwC for 10 weeks from May 23 this year at the request of HHI’s main creditor banks including the Export-Import Bank of Korea and KEB-Hana Bank. According to the analysis of Samil PwC, with the faithful execution of the proposed management plan, HHI would be able to make operating profits, secure enough liquidity and cut down considerable amount of debt each year until 2020.
S.Korea Shipbuilders' Lead creditors back Asset Sale, Cost Cuts
The lead creditors of two of South Korea's biggest shipbuilders have provisionally approved plans by Hyundai Heavy Industries and Samsung Heavy Industries to raise up to $4.2 billion in asset sales and cost cuts, people with knowledge of the plans said on Wednesday. The fund-raising moves come as a downturn in the global shipbuilding industry, depressed by a drop in orders from the oil industry because of lower crude prices, push the firms into heavy losses. The world's top three shipbuilders, all South Korean, reported combined net losses of $4.9 billion in 2015. Two people with direct knowledge of the matter said Hyundai Heavy's lead creditor…
Hyundai Heavy Industries Shedding Jobs, 'Non-Core' Assets
South Korea's Hyundai Heavy Industries Co Ltd, the world's biggest shipbuilder by revenue, will slash more jobs and sell non-core assets as part of efforts to cope with shrinking orders, it said on Monday. The South Korean government has urged ailing industries to speed up restructuring efforts to help revive Asia's fourth-biggest economy. Companies such as Daewoo Shipbuilding & Marine Engineering and the country's No. 1 shipping company Hanjin Shipping have already had to undergo debt restructuring with creditors due to a severe downturn in their respective industries. South Korea is home to the world's three largest shipbuilders - Hyundai Heavy…
No Financial Aid for STX Shipbuilding, Say Creditors
Creditors of financially troubled STX Offshore & Shipbuilding are opposing financial aid for the shipyard citing the gloomy outlook of the shipbuilding industry, Korea’s Yonhap News has reported. Creditors of STX Offshore, led by the state-run Korea Development Bank (KDB), decided to provide 450bn won ($384m) in financial aid to the shipyard last week in return for a thorough restructuring. But Woori Bank and KEB Hana Bank notified other creditors that they would not join the plan citing the shipbuilding industry’s worsening business conditions. STX Offshore is expected to receive the financial assistance as planned without the two lenders’ help.
