During the first nine months of the year, the shipbuilder’s net loss shrunk to KRW 1.42 trillion from a net loss of KRW 2.19 trillion reported in the nine-month period in the previous year, MANA correspondent reported.
The decrease in net loss is attributed to the company’s stringent cost-cutting measures undertaken as part of DSME’s restructuring procedure.
Namely, the Korea Development Bank (KDB) intended to convert KRW 1.8 trillion of debt into equity. The bank had earlier converted around KRW 400 billion worth of loans into DSME’s stocks.
The second creditor, the Export-Import Bank of Korea, had plans to buy KRW 1 trillion worth of bonds that would be sold by the shipbuilding company.
If the union’s approval letter is not submitted to the creditors by Friday, the banks may withdraw their injection plan, which could push the shipbuilder toward delisting and bankruptcy.