Biggest bondholder of Daewoo shipbuilding accepts rescue plan

The National Pension Service — the largest
bondholder of Daewoo Shipbuilding and Marine Engineering — has decided to accept a rescue
plan for the company that was proposed last month by state-run banks. Under the plan,… new loans worth two-point-six
billion U.S. dollars will be given to the world’s second largest shipbuilder by revenue,…
along with a debt-for-equity swap for lenders and bondholders… and a three-year grace
period to repay the remaining debt. In five rounds of discussions set for Monday
and Tuesday,… all the bondholders,… including the state pension fund,… will make their
final decision. If the plan is rejected, Daewoo will be put
under a new form of court receivership… which may result in 50-thousand job losses
and the mass cancellation of ships currently under construction.

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