South Korea’s second-largest shipbuilder, Daewoo Shipbuilding & Marine Engineering Co., has secured a $1.2 billion loan from a group of domestic banks to help fund its restructuring plan, the company said in a statement on Wednesday.
The loan, which has a maturity of five years, will be used to repay existing debt and invest in new businesses, the company said. Daewoo Shipbuilding has been struggling in recent years due to the global shipbuilding industry downturn and has been undergoing a restructuring process since 2015.
The loan is a sign that the company is making progress in its restructuring efforts and is starting to attract new financing. The company has been selling off non-core assets and cutting costs as part of its restructuring plan.
Daewoo Shipbuilding is one of the world’s largest shipbuilders and specializes in building offshore platforms, container ships, and LNG carriers. The company has been hit hard by the global shipbuilding industry downturn, which has led to a decline in new orders and lower prices.
The company’s restructuring plan is aimed at returning the company to profitability and improving its financial health. The plan includes cutting costs, selling off non-core assets, and investing in new businesses.
The $1.2 billion loan is a significant development for Daewoo Shipbuilding and is a sign that the company is making progress in its restructuring efforts. The loan will help the company to repay existing debt and invest in new businesses, which will help to improve its financial health and return it to profitability.
The global shipbuilding industry is expected to recover in the coming years, which will benefit Daewoo Shipbuilding. The company is well-positioned to take advantage of the recovery and is expected to return to profitability in the near future..
