KEXIM Bank: “Dae Sun Shipbuilding & Engineering Co., Ltd. Ends Workout After 3 Years” ... Makes a Fresh Start as SB Dae Sun

[Financial News] The Korea Export-Import Bank (KEXIM Bank) said on the 25th that it had concluded the joint management procedure (workout) of the Financial Creditors’ Council for Dae Sun Shipbuilding & Engineering Co., Ltd. (with KEXIM Bank as the lead creditor bank), three years after it began. Dae Sun Shipbuilding & Engineering Co., Ltd. will change its name to “SB Dae Sun” and make a fresh start.
Founded in 1945 as Dae Sun Ironworks, Dae Sun Shipbuilding & Engineering Co., Ltd. began a workout in October 2023 under the Corporate Restructuring Promotion Act after facing financial difficulties due to rising costs and production delays. In December last year, it sold Yeongdo Shipyard to Busan-based shipbuilding equipment company HANLA IMS for 107.15 billion won. Since the workout began, the creditors’ council has supported the company’s efforts to restore normal operations by providing 170 billion won in new funding and 10 billion won in guarantees, among other assistance. During the three-year workout, Dae Sun Shipbuilding & Engineering Co., Ltd. delivered all 18 vessels for which it had secured orders. As part of its self-rescue plan, it also sold Yeongdo Shipyard in January this year and consolidated its operations at Dadae Shipyard.

Also, beginning in January this year, it sought new investment as the final step toward restoring normal operations, and signed an investment agreement with SB Seonbo in July. Founded in 1986 as Namyeong Industrial, SB Seonbo is a Busan-based specialist in shipbuilding equipment and eco-friendly energy solutions that manufactures ship engine-room modules and eco-friendly fuel supply systems. After paying for newly issued shares, SB Seonbo became the largest shareholder in Dae Sun Shipbuilding & Engineering Co., Ltd., with a 97% stake, on the 21st. It thus became the new owner of the remaining assets of Dae Sun Shipbuilding & Engineering Co., Ltd., including Dadae Shipyard, excluding Yeongdo Shipyard, which had been sold earlier.
As a result, three years after the workout began, Dae Sun Shipbuilding & Engineering Co., Ltd. ended the creditor-led management regime. It will also change its name to “SB Dae Sun” and make a fresh start. Through its acquisition of Dae Sun Shipbuilding & Engineering Co., Ltd., SB Seonbo plans to expand its business into large-scale eco-friendly equipment and plant sectors.
A KEXIM Bank official said, “We expect business synergies from combining SB Seonbo’s existing eco-friendly energy systems technology with Dae Sun Shipbuilding & Engineering Co., Ltd.’s production infrastructure through SB Seonbo’s strategic investment,” adding, “The conclusion of Dae Sun Shipbuilding & Engineering Co., Ltd.’s workout will be a successful case of corporate restructuring, as it can also contribute to employment stability in the Busan region and the revitalization of the shipbuilding industry ecosystem.”

[email protected] Jo Eun-hyo Reporter