Doosan Heavy to receive extra $650m from KDB, Kexim
Korea Development Bank and the Export-Import Bank of Korea could shell out an additional relief of around KRW800 billion ($652.1 million) to Doosan Heavy Industries & Construction Co. after further investigation on the validity of the heavy equipment maker’s self-rescue plan.
The two lenders plan to offer the additional aid to the cash-strapped company, on top of the KRW1.6 trillion worth emergency funding they granted at the end of last month, a source said.
The company is still in deep financial trouble despite the KRW1.6 trillion assistance – KRW1 trillion worth loans and KRW600 billion to refinance $500 million in bonds maturing Monday. It has failed to give severance pay to 650 voluntary retirees and will soon receive additional voluntary retirement applications. It will also place several more employees on temporary leave.
The company has to pay off KRW4.2 trillion worth debt by the end of this year. This includes KRW1.25 trillion in corporate bonds, KRW1.1 trillion owed to state banks, KRW780 billion to commercial lenders, KRW360 billion to foreign banks operating in the country and KRW700 billion in short-term debt.
