Pledging to Raise 3 Tril. Won
Doosan Group announced on April 27 that it has submitted its final restructuring plan, through talks with creditors, which is designed to raise at least three trillion won. In response, the creditors including Korea Development Bank are going to provide Doosan Heavy Industries & Construction with an additional support of 800 billion won.
According to the plan, Doosan Heavy Industries & Construction will conduct a paid-in capital increase, make efforts for cost reduction, and dispose of non-essential assets. In addition, zero dividend and bonus will be implemented and wages will be returned to a sizeable extent. The company is going to focus on gas turbine-based power generation and renewable energy-based power generation while improving its financial structure.
Korea Development Bank and the Export-Import Bank of Korea are planning to check the details of the plan before the ongoing due diligence is completed. Then, they will come up with a business stabilization plan for Doosan Heavy Industries & Construction next month.
Earlier, the two banks provided the company with 500 billion won each. In addition, the Export-Import Bank of Korea provided 600 billion won by bond-loan conversion. A total of 2.1 trillion won or more is scheduled to be invested in the company, whose bond redemption scheduled for this year is 4.2 trillion won in total.