C&Heavy Industries may enter debt workout program: source

SEOUL, Nov. 24 (Yonhap) -- Creditors of C&Heavy Industries Co., a South Korean
shipbuilder, said Monday they are considering putting the cash-squeezed firm on a
debt rescheduling program.

Woori Bank, a main creditor lender, said it plans to convene a meeting of
creditors soon if the shipbuilder applies for the debt workout program.
According to industry sources, total exposure by local financial firms to C&
Group, a parent group of the shipbuilder, reached about 1.3 trillion won (US$866
million), out of which 227.4 billion won in loans were extended by Woori.
"Even if C&Heavy Industries enters the workout program, there would be no new
capital injection to the shipbuilder," an official at Woori said.
South Korea, home to seven of the world's top 10 shipyards, secured record orders
in recent years because of strong demand for crude carriers and offshore
exploration equipment amid high oil prices.
But the slumping economy and a sharp decline in new orders, along with foreign
exchange losses, are eroding local shipbuilders' profitability with some smaller
shipyards facing a severe liquidity squeeze.
sooyeon@yna.co.kr
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