Heavy Industry Giant US$1 Billion Rescue Plan

Twitter
Facebook
LinkedIn
Email
samsung_heavy_debt_1280_800_84_s_c1

Samsung Heavy Industries Co., one of South Korea’s largest shipyard owners, is preparing to sell almost US$1 billion in stocks to beat its large debt and avoid sinking in an industry slump, reported the Korea Times.

The shares are rumoured to be selling at around $6 each, and the sale procedures are planned to begin on November 7, 2016 with stocks listed for sale by November 28, 2016; its affiliate companies such as the famous Samsung Electronics are expected to participate.

The company has been struggling with debt for a while, in August 2016 PTI reported that Samsung Heavy was aiming to combat its losses from the ailing industry with a debt restructuring plan.

The self-rescue plan included asset sales and job losses; a week after this was reported the shipping company of the same nationality, Hanjin Shipping Co., announced its court receivership due to a $1 billion debt that was unable to be eliminated with a similar plan.

Park Dae-young, Samsung Heavy Chief Executive, said: “We decided to pursue a rights issue in order to respond proactively to uncertain market conditions and secure funding for the company's operations in a stable manner.”

Daily Email Newsletter

Sign up to our daily email newsletter to receive the latest news from Port Technology International.
FREE

Supplier Directory

Find out how to get listed

Webinar Series

Find out how to attend

Latest Stories

Cookie Policy. This website uses cookies to ensure you get the best experience on our website.