SEOUL: South Korean state banks are preparing a fresh US$2.6bil bailout for floundering Daewoo Shipbuilding & Marine Engineering Co Ltd, which has built up huge losses from offshore projects and risks missing debt repayments.
Without the infusion of funds, Daewoo is not expected to be able to redeem 940 billion won (US$840.49mil) in corporate bonds maturing this year – starting with 440 billion won due in April, the country’s financial regulator, the Financial Services Commission (FSC), said yesterday.
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