Doosan Group Graduates from Creditor Management System after 23 Months
San-eun Declares End to Restructuring
[Asia Economy Reporter Kim Heung-soon] Doosan Group, which faced a liquidity crisis immediately after the COVID-19 outbreak, is exiting the creditor management system. It has been about two years since the emergency fund request.
On the 27th, the Korea Development Bank (KDB) announced that as of the 28th, it will terminate the creditor management system under the financial restructuring agreement (MOU) signed between the creditor group and Doosan Group. This marks Doosan Heavy Industries' escape from restructuring 23 months after requesting emergency funding from KDB in March 2020. The creditor group has supported Doosan Heavy Industries' restructuring by providing emergency funds totaling 3 trillion KRW.
In a press release on the same day, KDB explained the reason for terminating the agreement, stating, "Based on the financial diagnosis results from an external expert institution regarding financial restructuring and future business prospects, it has been confirmed that Doosan Heavy Industries' financial structure has recovered to a level capable of independent management."
The creditor group and Doosan Group signed a memorandum of understanding (MOU) in June 2020, which included a financial restructuring plan (self-help plan) involving the sequential sale of group-held assets and capital expansion for Doosan Heavy Industries.
During the MOU period, Doosan Group sold assets worth a total of 3.1 trillion KRW and expanded Doosan Heavy Industries' capital by 1.15 trillion KRW through a paid-in capital increase completed on the 18th, totaling 3.4 trillion KRW in capital expansion.
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Along with this, the creditor group confirmed through the financial diagnosis by an external expert institution on financial restructuring and future business prospects that Doosan Heavy Industries' financial structure has recovered to a level capable of independent management.
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