[
THE INVESTOR] South Korea’s chief financial regulator said on March 21 that stakeholders of
Daewoo Shipbuilding & Marine Engineering should shoulder losses, a precondition for another round of rescue package for the cash-strapped shipbuilder.
Yim Jong-yong, chairman of the Financial Service Commission, made the remarks at a parliamentary committee when asked whether the government is considering another round of capital injection to help rescue DSME. Yim told lawmakers that the government has been reviewing an “additional restructuring plan” with creditors of DSME under “several preconditions.”
“The basic idea is that all stakeholders must shoulder losses,” said Yim.
Unless the stakeholders agree to the idea, Yim warned that DSME may be placed under a debt-workout program.
Creditors of Daewoo Shipbuilding are set to map out a rescue package this week, in exchange for more bold self-rescue efforts and huge debt rescheduling among creditors and bondholders, as the company is feared to face a deepening liquidity shortage amid a plunge in new orders.
By Alex Lee and newswires (
alexlee@heraldcorp.com)