SEOUL, May 31 (Korea Bizwire) – Creditors of cash-strapped Daewoo Shipbuilding & Marine Engineering Co. are set to inject fresh funds into the embattled shipyard next week, later than earlier scheduled, due to the delay in the debt rescheduling scheme, industry sources said Wednesday.
According to the sources, the state-run Korea Development Bank-led creditors are expected to start injecting 500 billion won (US$444 million) in cash into the shipbuilder in the coming days as the shipyard could face a cash shortage next month.
Originally, the creditors planned to extend financial assistance to Daewoo Shipbuilding before the end of the month, but their plan has been drawn out as an individual investor has filed a suit against a court decision for the 2.9 trillion-won debt rescheduling program.
The financial aid, part of the second bailout fund drawn up by its creditors, will be spent on payments to subcontractors and to employees, the sources said.
In March, the KDB-led creditors announced a fresh rescue package for the ailing shipbuilder that has been suffering from severe liquidity problems over heavy losses in its offshore projects.
Under the rescue package, Daewoo Shipbuilding is set to receive new loans worth 2.9 trillion won.
In return, Daewoo Shipbuilding has pledged to implement self-rescue measures, worth 5.3 trillion won, through 2018. It has already sold off noncore assets and cut its workforce, through which it has raised or saved 1.8 trillion won.