Daehan debt workout underway

Daehan Shipbuilding will receive new funding totalling 170 billion won from a group of creditors to stave off disaster and start its debt workout program. Daehan’s main bank, the Korea Development Bank (KDB), has signed a memorandum of understanding with Daehan and will defer the settlement of obligation until 2013, and will provide interest exemptions and reductions.

In February 2009, KDB and other financial institutions provided Daehan with 70 billion won in emergency operating funds.