Daewoo works on financial status
22 July, 2015, 12:00 am
South Korean shipbuilder Daewoo Shipbuilding & Marine Engineering Co (DSME) has confirmed to be in discussions with its creditors on potential moves that would improve the company’s financial status.
The shipbuilder said in a filing with Korea Stock Exchange it was considering various measures with creditors, but it did not disclose any further details on potential arrangements that might be involved in the process.
The announcement comes on the back of DSME’s share plunge on Wednesday, following a media report the company had amassed around $US1.8 billion ($F3.85b) of losses that have not yet been booked.
DSME closed at 8750 won in Seoul trading Wednesday, marking a 30 per cent fall and reaching its lowest level in more than 12 years.
According to the report, the creditors, led by state-run Korea Development Bank, are reviewing massive restructuring moves for the shipbuilder, including asset sales.
The shipbuilder had already revealed plans to trim down its mounting debt having posted a loss in the first quarter.
The plans included massive restructuring, switching focus on core business and disposing of underperforming subsidiaries. DSME identified its core business to be construction of merchant vessels, specialised vessels, and offshore vessels and facilities.