[THE INVESTOR] Daewoo Shipbuilding & Merchant Engineering
has redeemed the entire commercial paper worth 400 billion won (US$363.47 million) maturing in September, the company said on Sept. 9.
The redemption dispelled speculation that the cash-strapped shipbuilder would face a “September crisis” by failing to pay off the massive debt.
The shipyard‘s liquidity crunch has been eased partly as four ship owners paid some 600 billion won to DSME in advance for ships they had ordered.
DSME also said it will secure 110 billion won by delivering a large container ship earlier than the scheduled delivery date of Sept. 30.
The much-needed cash will enable the company to focus on normalization of its operations which has been undergoing restructuring amid an industry-wide slump. The shipbuilder has no more debt that matures this year.
On Sept. 8, DSME CEO Jung Sung-leep pledged that the company will complete its self-rehabilitation measures worth 5.3 trillion won and will get back on track within two years.
By Park Han-na (email@example.com