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FSS urges prudence in collecting shipbuilders’ debt

South Korea’s top financial regulator on Friday asked heads of banks not to recklessly collect debt from the financially-troubled shipbuilders such as Daewoo Shipbuilding & Marine Engineering. Zhin Woong-seob, governor of the Financial Supervisory Service, directly made such request at a meeting with CEOs of 15 commercial banks including Shinhan, Kookmin, Woori and KEB Hana, after thanking them for cooperating in the rescheduling of debt for DSME, the FSS said. The world’s largest shipbuilder by order backlog successfully earned a court approval on Thursday evening to receive a fresh 2.9 ...

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Working together to provide Damen’s Green Solutions

Bringing together the experience and knowledge of two Damen companies is the close cooperation between Damen Green Solutions and Damen Shiprepair & Conversion (DSC). The two companies combine their specific skill sets to offer ship owners a smoother transition towards compliance with new environmental regulations and cleaner sailing. Regarding the subjects of Ballast Water Management, exhaust after treatment systems, LNG conversions and also other, more traditional, methods of cleaner shipping, the synergy between Damen Green Solutions and DSC provides ship owners and operators the very realistic benefits of proven project ...

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Daewoo Shipping’s Losses Hit KEB Hana Bank Hardest

Even though Daewoo Shipbuilding & Marine Engineering (DSME) completed its debt rescheduling, the financial sector came to bear a bigger burden. According to the banking sector on March 19, five commercial banks — KEB Hana Bank, KB Kookmin, Woori Bank, NH Bank, and Shinhan Bank –- will conduct a fair evaluation in June following a debt-for-equity swap of DSME. The evaluation will be carried out with an external accounting firm and the accounting firm will be selected through consultations with five banks with the Korea Development Bank (KDB) and the ...

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Who designed DSME bailout?

Questions have risen over the government’s stance on support for Daewoo Shipbuilding & Marine Engineering (DSME), as the Financial Services Commission (FSC) has started denying it designed the bailout plan. The cash-strapped shipbuilder is likely to escape its liquidity crisis, as corporate bondholders agreed this week to a debt rescheduling program in which they will get a debt-for-equity swap for half of their bonds and will roll over the repayment of the other half for three years. Under the bailout plan, the Korea Development Bank (KDB) and the Export-Import Bank ...

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Gujarat: Only 4 per cent growth, Alang shipbreaking business continues to languish

“Compared to last year, the business in Alang is looking up. Currently, of the total 161 plots about 100 of them have ships and are functional,” said Captain Sudhir Chadha. The shipbreaking industry at Alang clocked a feeble 4 per cent growth in 2016-17, despite a new ship recycling policy introduced by the Gujarat government in January last year. Competition from neighbouring Pakistan and Bangladesh also continued to affect business at one of the world’s prominent ship recycling yards in Gulf of Khambhat. In the last fiscal, 259 ships beached ...

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FSC Chairman Announces to Normalize DSME through Private Management

As Daewoo Shipbuilding and Marine Engineering Co. (DSME) successfully completed the bondholder’s meeting on April 18, the cash-strapped company has dramatically dodged a court receivership. With bondholders accepting a debt-to-equity swap, Korea Development Bank (KDB) and Export-Import Bank of Korea (Eximbank) will supply up to 2.9 trillion won (US$2.54 billion) to normalize DSME through private management. After the fifth bondholder’s meeting on the 18th, Financial Services Commission (FSC) Chairman Lim Jong-ryong said, “Since all stakeholders have decided to share the pain, DSME has gained an opportunity to recover.” In order ...

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Daewoo Shipbuilding files for debt restructuring

Daewoo Shipbuilding & Marine Engineering filed a petition with the Changwon District Court on Thursday, seeking approval for its 2.9 trillion won ($2.5 billion) bailout plan. If DSME’s mass debt-restructuring proposal is approved, the cash-strapped shipbuilding firm will receive 2.9 trillion won in liquidity from its major creditors, including the Korea Development Bank and the Export-Import Bank of Korea. Upon the court’s approval, there will be a weeklong window for bondholders to appeal. If the approval is finalized, roughly half of the outstanding balance of fresh corporate bonds worth 1.35 ...

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Keppel Corporation Limited Unaudited Results for the First Quarter Ended 31 March 2017

The Directors of Keppel Corporation Limited advise the following unaudited results of the Group for the first quarter ended 31 March 2017. FIRST QUARTER 2017 REPORT CARD The Keppel Group’s 1Q 2017 financial performance stayed resilient, underpinned by its multi-business strategy. 1. Net Profit was S$260 million, up 23% from S$211 million for 1Q 2016. Lower profit in the Offshore & Marine Division was offset by improved earnings from the Infrastructure and Investments divisions, as well as steady contributions from the Property Division. 2. Earnings per Share was 14.3 cents, ...

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Damen Orders Its 110th Crane From Liebherr And Celebrates Their 30-Year Relationship

A longstanding partnership between Damen Shipyards and leading crane manufacturer Liebherr was celebrated with the announcement that Damen has ordered its 110th crane from Liebherr. The two family-owned companies have worked together since 1985. The 110th order was for a Liebherr CBG 350 crane, which will be installed on the new generation Transshipment Crane Barge 6324. Member of the board of Liebherr-International AG, Patricia Rüf, and CCO Arnout Damen, both represent the third generation of their family-owned companies. At the signing ceremony for the 110th order, Patricia Rüf said, “The ...

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Smaller Korean Shipbuilders on the Edge of a Precipice

Daewoo Shipbuilding & Marine Engineering (DSME) succeeded in avoiding receivership as the South Korean government decided to provide 2.9 trillion won (US$2.6 billion) for the revival of the major shipbuilder. Smaller South Korean shipbuilders are going through harsh times though. Most of them have already gone under or are about to go bankrupt. “It is not desirable at all to stop supporting smaller shipbuilders suffering from the lack of work based on uniform criteria,” said an industry expert, adding, “The South Korean government needs to restructure the companies in view ...

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Samsung Heavy bags order for 2 LNG carriers

Samsung Heavy Industries Co., a major shipyard here, has clinched a deal to build two liquefied natural gas carriers with a local shipping firm, industry sources said Wednesday. Under the deal with Korea Line Corp., Samsung Heavy will build two LNG carriers that can carry 7,500 cubic meters of LNG each by May and December 2019, respectively, according to the sources. The value of the deal was not immediately revealed. The ships will be used to transport LNG between local ports, they said. In late 2015, Samsung Heavy also clinched ...

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Japan and EU Protest DSME Bailout from S. Korean Government

Japan and the European Union officially raised concerns over the Korean government’s latest 2.9 trillion won ($2.5 billion) bailout plan to rescue cash-strapped Daewoo Shipbuilding & Marine Engineering at a working group meeting of the Organization for Economic Cooperation and Development in Paris, a government official said Wednesday. The reactions from Japan and the EU came as nearly all bondholders of the world’s largest shipbuilder — including its largest bondholder, the National Pension Service — agreed to convert half of its 1.3 trillion won of debt to equity and extend ...

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Japanese shipbuilders plan reforms to weather losses

Major shipbuilding companies are implementing structural reforms, such as scaling down unprofitable businesses and launching tie-ups with other companies to reduce costs. This has been prompted by worsened business performance, with orders for ships having decreased worldwide and with companies incurring huge losses. If effects of the reforms are limited, it is possible that a realignment of the industry will occur as a result in the future. On March 31, Kawasaki Heavy Industries Ltd. announced that it will relocate its main cargo ship production base from Japan to China in ...

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South Korea’s Daewoo Shipbuilding Thrown a Lifeline

South Korea’s debt-ridden Daewoo Shipbuilding & Marine Engineering Co., the world’s second biggest shipyard, was thrown a lifeline after creditors agreed to a massive debt-to-equity swap as part of a bailout plan. The agreement came after the National Pension Service, which holds a quarter of Daewoo’s outstanding bonds, decided to convert its bonds into equity as part of a fresh 2.9 trillion Korean won ($2.6 billion) rescue plan, leading the other bondholders–some of whom were previously undecided–to follow suit during two days of voting that ended Tuesday. Creditors overwhelmingly voted ...

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Self-rescue plan, new orders crucial for Daewoo Shipbuilding’s survival

The fate of Daewoo Shipbuilding & Marine Engineering Co. will largely hinge on its implementation of bold self-rescue measures and a revival of new orders, even after bondholders of the world’s largest shipyard by order backlog accepted the massive debt restructuring proposal, industry watchers said Tuesday. Over the past two days, investors who hold some 1.3 trillion won (US$1.13 billion) worth of bonds sold by Daewoo Shipbuilding have overwhelmingly voted for the debt rescheduling proposal drawn up by its creditors led by the state-run Korea Development, a precondition set by ...

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