Creditors approve Hyundai Heavy restructuring

Hyundai Heavy Industries Co., the world’s biggest shipbuilder, has laid a plan that includes 2.6 trillion won ($2.2 billion) in asset sales and workforce reductions in order to stay afloat amid a drop in new orders.    Hyundai Heavy Industries Co., the world’s biggest shipbuilder, received an initial approval from its creditor KEB Hana Bank to raise 2.6 trillion won ($2.2 billion) selling assets, according to a person familiar with the plan.
   The shipbuilder plans to sell stakes in other companies and real estate projects, the person said, asking not to be identified as the information isn’t public. Hyundai Heavy will also sell some of its businesses, including solar energy, the person said.
   An Young Geun, a spokesman for the creditor, confirmed the approval without providing details. Hyundai Heavy declined to comment.
   Hyundai Heavy is the first of the so-called Big Three shipyards in South Korea to get an approval for its restructuring plans after reporting losses last year amid delays in deliveries and a drop in the number of orders. Oil prices that have more than halved in the last two years have crushed demand for new vessels and offshore drilling products.
   Ulsan, South Korea-based Hyundai Heavy has reduced the number of its executives, carried out an early retirement program and cut pay after posting a loss of 1.35 trillion won last year.
   Daewoo Shipbuilding & Marine Engineering Co. and Samsung Heavy Industries Co., part of the Big Three, are also seeking approval from their main creditor banks on their restructuring plans.
   The government said in April that creditor banks of the three shipyards will review the plans every quarter and that a merger among them would be inappropriate.