S.Korea state banks to inject $2.4 bln into Daewoo Shipbuilding

Struggling Daewoo Shipbuilding & Marine Engineering Co Ltd’s will receive an injection of 2.8 trillion won ($2.4 billion) from two state-run creditor banks to save it from being delisted, one of the lenders said.

Daewoo’s main creditor, Korea Development Bank (KDB), said in a statement it will cancel about 60 million of its Daewoo shares, and reduce the remaining stake by a ratio of ten shares to one to cut the ship builder’s debt-to-asset ratio.

It will then inject 1.8 trillion won ($1.6 billion) in Daewoo in a debt-for-equity swap.

The Export-Import Bank of Korea will buy 1 trillion won in Daewoo-issued perpetual bonds to shore up Daewoo’s finances, KDB added.
Source: Reuters (Reporting by Joyce Lee; Editing by Edwina Gibbs)