By Joyce Lee

SEOUL, March 24 (Reuters)– Daewoo Shipbuilding & & Marine Engineering Co Ltd’s chief executive officer Jung Sung- leep stated he thinks he must tip down from the leading placement if the cash-strapped South Korean company is not able to profit this year.

South Korean state financial institutions have actually stated they are preparing a fresh $2.6 billion bailout for Daewoo Shipbuilding, which has actually acquired significant losses from overseas tasks and also dangers missing out on financial debt payments this year.

Already released in the consequences of the Asian monetary dilemma of the late 1990s and also sustained once again in 2015, Daewoo’s financials have actually worn away swiftly as a result of hold-ups and also problem structure complicated offshore centers. It published a document bottom line of 3.3 trillion won in 2015 and also remained in the red in 2016.

“Although there might be problems with liquidity, that has nothing to do with winning orders this year,” CHIEF EXECUTIVE OFFICER Jung informed press reporters onFriday “Because we are full this year with orders already won, this year’s profits depend on how well we make the ships according to prediction.”

“If by some factor we do not make a profit this year, it would be due to my shortcomings, and I must naturally step down,” CHIEF EXECUTIVE OFFICER Jung included.

Daewoo has the globe’s biggest quantity of existing orders amongst shipyards, with 6.16 million made up gross tonnage (CGT) still to be provided, versusNo 2 Samsung Heavy’s 3.6 million CGT and alsoNo 3 Hyundai Heavy’s 3.39 million CGT, Clarksons Research information programs.

But, of the 3, Daewoo’s scenario is one of the most hard.

Without the mixture of funds, Daewoo is not anticipated to be able to retrieve 940 billion won ($ 838.27 million) in business bonds developing this year– beginning with 440 billion won due in April, the nation’s monetary regulatory authority stated on Thursday.

Daewoo has actually elevated just 1.8 trillion won, of the 5.3 trillion won in possession sales and also expense suffice had actually promised to increase beginning in October 2015, when financial institution financial institutions started instilling billions of bucks to restore the shipbuilder.

Jung stated a building and construction system, one more non-shipbuilding system, and also a shipyard in Romania were done in talks with prospective customers. “We’ve expanded our asset sales and cost-cutting plan three times,” Jung stated. “There is nothing else to sell.”

Daewoo will certainly look for a contract with the work union to reduce even more employees expenses, Jung stated, without clarifying.

Daewoo has actually reduced concerning 3,000 workers because October 2015, and also presently straight uses concerning 10,400 individuals.

CHIEF EXECUTIVE OFFICER Jung stated he anticipated Daewoo to obtain significant telephone calls from shipowners for “builder’s default”, terminating existing orders, if the firm enters into court receivership– the regulatory authority’s alternative prepare for the distressed company in instance the bailout does not experience.

Company management will certainly do its finest to encourage stakeholders that hold Daewoo financial debt, such as globe’s No.3 pension plan fund National Pension Service, that backing the federal government’s prepare for debt-equity swaps and also moratorium is one of the most sensible choice, Daewoo CFO Kim Youl- jung stated.

National Pension Service holds concerning 390 billion won in Daewoo business bonds, Yonhap reported. A spokesperson for the fund stated it was thinking about the issue, however did not provide any kind of additional information.

($ 1 = 1,121.3600 won) (Reporting by Joyce Lee; Editing by Himani Sarkar)

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