[Market Now] Dongbu Steel not for sale anymore

By Korea Herald
  • Published : May 18, 2016 - 17:22
  • Updated : May 18, 2016 - 17:22

Dongbu Steel, the ailing steelmaking affiliate of South Korea’s Dongbu Group, said that its creditors have stopped their attempt to sell the steelmaker.

“With creditors’ debt-to-equity swap plan and improved earnings of the company amid business conditions in the steel industry, M&A attempts have been stopped,” the company said in a regulatory filing.

Dongbu Group headquarters in Seoul (Yonhap)

Its main creditor Korea Development Bank has been struggling to find a suitor for the steelmaker due to lack of interest from potential buyers.

Dongbu Steel was put up for sale in October last year, when it was placed under a debt workout program led by its creditors.

By Kim Yoon-mi (