Doosan Group graduates from state creditor management in 23 months

사진설명 사진 확대 South Korea’s Doosan Group on Monday graduates from 23-month-long creditor management after fully complying with the terms of a bailout loan from state lenders.
Doosan Group’s primary creditor and state-run Korea Development Bank (KDB) Sunday announced it was releasing the conglomerate from creditor supervision for meeting the restructuring promises by selling off 3 trillion won ($2.5 billion) worth assets and bolstering Doosan Heavy Industries’ capital by 3.4 trillion won through the latest rights offering of 1.15 trillion won on Feb. 18.

The group had promised restructuring in return for 3 trillion won emergency loan from KDB and Export-Import Bank in March 2020 to prevent Doosan Heavy Industries from going bankrupt amidst termination of new orders in nuclear reactors and thermal power plants under the government’s energy transition roadmap. Restructuring scheme under creditor management was signed in June 2020.

It made the fastest turnaround case among corporate bailouts, KDB said.

Shares of Doosan Heavy Industries shot up 11.64 percent to 21,100 won on Monday morning.

사진설명 사진 확대 Doosan Heavy Industries that suffered operating and net losses in 2020 swung to profit in 2021. The company raised 890.8 billion won in operating profit and 645.8 billion won in net profit on sales of 11.8 trillion won, up 22.5 percent from the previous year. It also managed to shave debt by shedding assets.
Doosan Group Chairman Park Jung-won and his family surrendered 23 percent stake in Doosan Fuel Cell Co. to Doosan Heavy Industries for free.

The graduation is expected to upgrade its credit rating and reduce financial costs.

KDB also said that Doosan Heavy Industries will be starting anew under future-oriented business structure in renewable energy sector such as those involving gas turbines, next-generation nuclear power, hydrogen, and offshore wind energy.

Doosan Group graduates from state creditor management in 23 months

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