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 (email@example.com