South Korean shipbuilder Samsung Heavy Industries and the Export-Import Bank of Korea (Korea Eximbank) have agreed to take over and jointly manage the financially troubled Sungdong Shipbuilding & Marine Engineering for an initial period of four years, the state-run lender said in a release.
Samsung Heavy will be in charge of Sungdong’s sales, procurement, production and technology sectors, a move expected to attract fresh orders.
In return for taking over shipbuilding operations at Sungdong, Samsung Heavy will be granted the right of first refusal once the shipbuilder completes restructuring and is put up for sale.
Korea Eximbank, the debt stricken Sungdong’s main creditor with KRW 1.6 trillion (USD 1.36 billion) worth of loans and a stake of KRW 1 trillion, will manage finances, human resources, and labor issues at this mid-sized shipbuilder located in Tongyeong, South Gyeongsang Province.
The bank also announced several hundred billion worth of additional loans to Sungdong by year’s end.
World Maritime News Staff