Creditors including Korea Development Bank and Industrial Bank of Korea consider additional 800 billion KRW support for Doosan Heavy Industries
Acceptance of Doosan Group's Final Self-Rescue Plan and Review of Additional Support
[Asia Economy Reporter Kangwook Cho] The Korea Development Bank and the Export-Import Bank of Korea announced on the 27th that they have accepted the financial restructuring plan (self-rescue plan) for Doosan Heavy Industries & Construction submitted by the Doosan Group and have begun reviewing additional financial support. The scale of the financial support is estimated to be around 800 billion KRW.
The creditors' group has been negotiating modifications and supplements to enhance the feasibility of the self-rescue plan submitted by the Doosan Group as of the 13th. Subsequently, upon the Doosan Group's submission of the final self-rescue plan, they decided to accept it.
The final self-rescue plan includes business restructuring directions to improve Doosan Heavy Industries & Construction's independent survival capability, as well as pain-sharing and self-help efforts by affiliated companies and major shareholders. The creditors' group judged that, provided the plan is implemented without setbacks and aligns with the restructuring principles they have upheld, the normalization of Doosan Heavy Industries & Construction can be expected. Therefore, they decided to review additional financial support for the repayment of convertible bonds with warrants scheduled for early next month.
After reviewing the detailed step-by-step schedule and procedures of this self-rescue plan, the creditors' group plans to prepare a 'Doosan Heavy Industries & Construction Management Normalization Plan' by next month once the ongoing due diligence is completed, and will begin full-scale management improvement efforts.
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Furthermore, through these measures, it is expected that the liquidity crunch caused by the COVID-19 crisis will be resolved, enabling financing through their own credit. However, if market-based financing recovery proves difficult, additional support will be reviewed with the creditors' group.
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