KDB presses Hanwha to clarify funding plan for shipyard takeover

The state-run Korea Development Bank (KDB) demanded Tuesday that Hanwha Group submit its detailed plan for funding the acquisition of Daewoo Shipbuilding & Marine Engineering Co. within this week. KDB, the main creditor of the world's third-largest shipyard, last week threatened to scrap a deal to sell a controlling stake to Hanwha, unless it meets a Jan. 30 deadline to seal the contract. Hanwha reportedly offered 6.5 trillion won (US$4.95 billion) for Daewoo Shipbuilding, but had requested postponement of payment amid a severe credit crunch. But KDB rejected the request, instead offering to extend the deadline until Jan. 30 and buy some of Hanwha's assets to help it raise money  for the takeover.
"KDB will thoroughly review Hanwha's funding plan," the lender said in a statement. "After a rigorous evaulation of the group's funding plan, KDB will decide whether to go ahead with the deal or not."
Hanwha has been facing difficulty in raising money through the sale of stakes in real estate and Korea Life Insurance , the nation's No. 2 life insurer, due to the global financial turbulence.
Meanwhile, the Chosun Ilbo reported earlier in the day that Hanwha is mulling the sale of part of its assets, valued at 3.5 trillion won, to KDB and other investors.
Earlier, KDB offered to buy part of assets held by Hanwha through a private equity fund to help the group secure funding for the takeover of Daewoo Shipbuilding.