SEJONG, May 29 (Yonhap) — Top economic policymakers and heads of state-run creditor banks on Friday discussed a self-rescue plan submitted by cash-strapped Doosan Heavy Industries & Construction Co., the finance ministry said Friday.
Two state-run creditors — the Korea Development Bank and the Export-Import Bank of Korea — have been in talks with Doosan Group, the parent of Doosan Heavy, on a debt restructuring plan for the builder of turbines, power plants and roads.
During the Friday meeting, the creditors briefed economic policymakers, including Finance Minister Hong Nam-ki, on the debt restructuring plan, the ministry said in a statement.
Under the plan, Doosan Heavy will launch a “large-scale” rights offering and sell non-core assets, according to the statement.
Doosan Heavy will also transform its business portfolio into “eco-friendly” businesses, it said.
The creditors expected the debt restructuring plan to help Doosan Heavy stand on its own feet, the statement said.’
Doosan Group has put its affiliates and assets, such as Doosan Solus Co., a copper foil maker for electric vehicles, and Doosan Tower, the group’s headquarters building in Seoul, up for sale.
The sale of Doosan Solus is expected to fetch between 700 billion won (US$565.2 million) and 800 billion won, but Doosan Group wants at least 1 trillion won from the asset sale.
It has been widely said that Doosan Heavy suffered setbacks in business as the outbreak of the new coronavirus and the poor performance of its construction affiliate, Doosan Engineering & Construction Co., dented Doosan Heavy.
Another reason for the setback has been reported to be the shift of the country’s energy policy from nuclear and fossil fuel-based power generation to renewable energy sources, such as solar power.