Daewoo Shipbuilding & Marine Engineering signed an agreement with its main creditor on Tuesday to start receiving funds for financing its plans to put the embattled shipbuilder back on track.

Up to 4.2 trillion won ($3.6 billion) of fresh loans are expected to be injected into Daewoo under the memorandum of understanding it signed with Korea Development Bank, according to related sources.

KDB said it signed the memo on the behalf of all of Daewoo’s creditor banks that includes the Export-Import Bank of Korea. 

Once the new finances are confirmed, Daewoo will hold a temporary shareholders’ meeting next month to change its internal regulations to pave the way for capital increases amounting to 1 trillion won or more.

(khnews@heraldcorp.com)