[THE INVESTOR] Daewoo Shipbuilding and Marine Engineering’s CEO Jung Sung-leep went to Dubai hold a negotiation with the Angolan state-owned oil firm over 1 trillion won (US$990 million) dues last week, but failed to resolve the issue, according to the company on Sept. 27.
The South Korean shipbuilder has completed building two drill ships, set to be delivered in June and July, respectively, but due to financial difficulties, the Angolan company has postponed the delivery. The companies have agreed to push the transaction date to end-September, but the takeover is being postponed again.
Also suffering from lack of liquidity, DSME has decided to receive 80 percent of the remaining payment in cash and the rest in stocks of a special purpose vehicle that would manage the two drill ships. Sonangol is still having difficulties securing funds.
Although the shipbuilding company does not have short-term borrowings that mature within this year, this delay does not pose immediate difficulties, as the company official said, it does have 940 billion won standing debt due in 2017.
By Hwang You-mee (
glamazon@heraldcorp.com)
