San-eun, Doosan Heavy Industries' Submission of Self-Rescue Plan "Review Feasibility and Prepare Normalization Measures"

On the 27th, the Doosan Tower building in Dongdaemun-gu, Seoul, is visible as the government decided to inject 1.6 trillion won into Doosan Heavy Industries, which is experiencing financial difficulties, through the Korea Development Bank and the Export-Import Bank of Korea. Photo by Kang Jin-hyung aymsdream@

[Asia Economy Reporter Kim Hyo-jin] KDB Industrial Bank has expressed its intention to review the feasibility of the financial restructuring plan (self-help plan) submitted by Doosan Group to the creditors for the normalization of Doosan Heavy Industries & Construction's management and to prepare a normalization plan.

On the 13th, KDB Industrial Bank officially stated, "After comprehensively reviewing the feasibility and practicability of the self-help plan, compliance with restructuring principles, the burden of financial support and repayment possibility for the creditors, and the impact on national key industries, we will prepare a management normalization plan for Doosan Heavy Industries & Construction through consultations with Doosan Group."

On the same day, Doosan Group delivered the financial restructuring plan for Doosan Heavy Industries & Construction to the creditors. Doosan Group said, "The group and major shareholders have prepared the financial restructuring plan with a resolute attitude to fulfill responsible management," adding, "Doosan Heavy Industries & Construction is also reviewing all assets that can be sold or securitized for rapid financial restructuring and management normalization."

Doosan Group also explained, "The financial restructuring plan submitted to the creditors today will be finalized after consultations with the creditors and board resolutions," and "All affiliates and employees will do their best to faithfully implement the finalized plan to achieve the goals early." Doosan Group added that it will announce detailed contents after the financial restructuring plan is finalized.

Once the self-help plan is finalized, specific asset sales and securitization measures are expected to be promoted. The creditors announced on the 27th of last month that they decided to provide 1 trillion won in support to Doosan Heavy Industries & Construction and would review additional funding after confirming self-help efforts.

In the financial and business circles, it is speculated that Doosan Group included the sale of shares in Doosan Solus and Fuel Cell, as well as the sale of some business units of Doosan Heavy Industries & Construction, in the self-help plan. Additionally, it is expected that the plan includes measures to separate the vertical affiliate structure linking Doosan Heavy Industries & Construction’s subsidiaries Doosan Infracore and Bobcat.

The creditors reportedly ordered to break the vertical affiliate structure connecting Doosan Corporation → Doosan Heavy Industries & Construction → Infracore → Bobcat. This means preventing the financial tightening caused by the poor performance of Doosan Heavy Industries & Construction from directly affecting Infracore and Bobcat.

In the industry, a method is being discussed where Doosan Heavy Industries & Construction is divided into an operating company and an investment company, with the shares of Infracore and Bobcat placed under the investment company, which is then merged into Doosan Corporation.

This content was produced with the assistance of AI translation services.