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Daewoo Shipbuilding to receive second lifeline from creditors

Korea Development Bank and Export-Import Bank of Korea will provide USD 2.6 billion in additional loans to Daewoo Shipbuilding and Marine Engineering, and swap about KRW 1.6 trillion of debt to equity.

Photo: Thorbjørn Hansen

Daewoo Shipbuilding & Marine Engineering Co. could receive another lifeline from lenders as the world's biggest shipbuilder needs cash to complete work on pending orders to stay afloat.

Korea Development Bank and Export-Import Bank of Korea will provide KRW 2.9 trillion (USD 2.6 billion) in additional loans and swap about KRW 1.6 trillion of debt to equity, Korea Development Bank said in a statement Thursday. This is conditional upon other creditors and bondholders agreeing to convert as much as 80 percent of their debt to equity and extend maturities by as much as five years, it said.

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