Deals
Daewoo Shipbuilding's Bailout Plan Cleared by Pension Fund
- National Pension Service held key to Daewoo Ship’s survival
- Bond holders are scheduled to meet Monday, Tuesday in Seoul
Daewoo Shipbuilding's Debt Plan Is Approved
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Daewoo Shipbuilding & Marine Engineering Co., the world’s largest shipbuilder, won a reprieve from major bondholder National Pension Service and other lenders, helping avert a payment crisis that had threatened to almost shut the company.
The NPS agreed to restructure 1.55 trillion won ($1.4 billion) of bonds issued by the company after the shipbuilder, the Korea Development Bank and Export-Import Bank of Korea took steps to ensure repayment of the debts, the pension service said in a statement April 16. Banks agreed to convert 80 percent of loans to Daewoo into shares and to extend the maturity on the remainder, the Financial Services Commission said separately.