Doosan Corp. may be pressed to share burden for loan grant to Doosan Heavy I&C
2020.04.08 13:25:41 2020.04.08 13:29:59
이미지 확대Doosan Heavy I&C was promised of 1 trillion won ($819 million) in emergency loan from Korea Development Bank (KDB) and the Export-Import Bank of Korea (Eximbank). It must hand over self-rescue plan this week to receive the grant.
KDB Chairman Lee Dong-gull conditioned that the new loan will be provided “on the premise of burden sharing by large shareholders.”
That would involve the company’s parent Doosan Corp.
Until now, Doosan Heavy I&C was rumored to study demerging Doosan Infracore Co. and Doosan Bobcat Inc. to protect them from the troubles of the construction equipment company.
If the conglomerate is forced to divest noncore business, it would have to yield retail, which is mostly in real estate property after it phased out of fast-food franchise and fashion. Doota Mall, or Doosan Tower located in the fashion wholesale market of Dongdaemun in Seoul, has been leased out to Hyundai Department Store after it withdrew from travel retail business last year.
It also could sell some of its stakes of profit-making units such as battery copper foil/ OLED materials maker Doosan Solus Co. and fuel cell maker Doosan Fuel Cell Co.
Doosan Corp. together with related individuals including Doosan Group Chairman Park Jeong-won owns 50.84 percent of outstanding common shares and 11.04 percent of preferred shares in Doosan Solus. In the fuel cell manufacturer, the company and owner family relations hold 65.08 percent in common stock and 48.34 percent in preferred stock.
For the fourth quarter ended December 2019, Doosan Solus reported a consolidated operating income of 10.2 billion won on revenue of 70 billion won. Doosan Fuel Cell registered 19.5 billion won in operating income and 221.2 billion won in revenue for the same quarter.
Creditors have advised Doosan Heavy I&C to seek workout program to rationalize its business, deeming its woes stem from slow response to changes in the market.
Doosan Heavy I&C’s revenue reliant 80 percent on overseas power plant market topped 5 trillion won in 2015 but has slipped to 4 trillion level. It ran into liquidity troubles after it lent out 1 trillion won to Doosan Engineering & Construction Co.
Creditors have pushed out Kumho Group chairman and pressed the transportation conglomerate to sell its flagship Asiana Airlines Co. in return for 1.6 trillion won bailout.
By Noh Hyun, Kim Gang-rae, and Cho Jeehyun
[ⓒ Pulse by Maeil Business Newspaper & mk.co.kr, All rights reserved]
