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Doosan sells golf club for 1st bailout payback

An aerial view of Club Mow (Courtesy of Club Mow)
An aerial view of Club Mow (Courtesy of Club Mow)
Financially stressed Doosan Heavy Industries & Construction said Sunday it has closed a deal to sell its golf course for 185 billion won ($155.33 million), enabling it to make debt repayment for the first time since a bailout package earlier this year.

Part of the sales proceeds -- roughly 120 billion won -- went to creditors, which have so far injected 3.6 trillion won in the cash-strapped Doosan Group.

A consortium composed of construction firm Moamiraedo and Hana Financial Group is the buyer of the 27-hole golf club located in Hongcheon-gun, Gangwon Province. Doosan Heavy has owned the site since 2013.

The transaction agreement was signed in July.

This comes amid Doosan Heavy’s business normalization plan in its transition to a green energy firm by phasing out of its traditional power equipment manufacturing business for coal fire and nuclear energy.

Since March, Doosan Heavy has received a combined 3 trillion won worth of financial packages from state-run lenders such as the Korea Development Bank and the Export-Import Bank of Korea.

Eximbank also converted 600 billion won worth of bonds into loans to Doosan. In return, Doosan Group sought to cash out a combined 3 trillion won onward, with a third of the pledge to be made by the end of this year.

Also up for sale are apartment builder Doosan Engineering & Construction, copper foil maker Doosan Solus, Doosan Group’s headquarters building in Seoul, a venture capital arm Neoplux and machinery manufacturing unit Doosan Infracore.

By Son Ji-hyoung (