Home

The Korea Herald

Latest news

Most Popular

  1. 1

    Now is no time to add pressure on businesses: top executives

    Now is no time to add pressure on businesses: top executives
  2. 2

    CJ CheilJedang to spur overseas growth with new Hungary, US plants

    CJ CheilJedang to spur overseas growth with new Hungary, US plants
  3. 3

    Seoul to host winter festival from Dec. 13

    Seoul to host winter festival from Dec. 13
  4. 4

    Nationwide rail disruptions feared as union plans strike from Dec. 5

    Nationwide rail disruptions feared as union plans strike from Dec. 5
  5. 5

    Blackpink's solo journeys: Complementary paths, not competition

    Blackpink's solo journeys: Complementary paths, not competition
  1. 6

    N. Korea, Russia court softer image: From animal diplomacy to tourism

    N. Korea, Russia court softer image: From animal diplomacy to tourism
  2. 7

    [Today’s K-pop] Blackpink’s Jennie, Lisa invited to Coachella as solo acts

    [Today’s K-pop] Blackpink’s Jennie, Lisa invited to Coachella as solo acts
  3. 8

    Smugglers caught disguising 230 tons of Chinese black beans as diesel exhaust fluid

    Smugglers caught disguising 230 tons of Chinese black beans as diesel exhaust fluid
  4. 9

    Actor Song Joong-ki welcomes second child in Rome

    Actor Song Joong-ki welcomes second child in Rome
  5. 10

    Korean Air offers special flights for mileage users

    Korean Air offers special flights for mileage users
피터빈트

NPS likely to seek redress from DSME corporate bond buying

By Son Ji-hyoung

Published : April 5, 2017 - 14:21

    • Link copied

The National Pension Service of Korea is expected to seek redress from the losses it suffered by investing in corporate bonds of debt-saddled shipbuilder Daewoo Shipbuilding & Marine Engineering, regardless of its decision on the shipbuilder’s rescue plan.

“We are likely to file a damage suit against DSME to get compensation for losses from buying its corporate bonds,” a source from NPS was quoted as saying by Yonhap News Agency on Wednesday. 

(Yonhap) (Yonhap)

According to the source, NPS has yet to decide on whether to accept the debt restructuring plan, mainly orchestrated by the state-led Korea Development Bank, DSME’s largest shareholder. NPS will discuss the agenda in a meeting slated for Friday.

NPS, one of the creditors of the financially pinched shipbuilder and Korea’s largest institutional investor, was asked to accept debt-equity swap on 50 percent of its DSME corporate bonds, worth 194.4 billion won ($172.8 million).

NPS’ damage from bond investing is estimated to be 268.2 billion won, including the bonds it would relinquish by placing them under the debt-equity swap deal.

The pension fund manager bought 388.7 billion won worth of DSME bonds from 2012 to 2015.

DSME was found to have falsified business records between 2008 and 2016. Deloitte Anjin, the company’s outside accounting firm between 2000 and 2015, was confirmed to be banned from opening new accounts for one year, starting Wednesday, for keeping silent about the window dressing during the period.

NPS reportedly sees its losses as damages from manipulated information.

Earlier in July 2016, NPS separately claimed damages worth 48.9 billion won against DSME and Deloitte Anjin executives from investing in shares. The litigation is ongoing.

By Son Ji-hyoung (consnow@heraldcorp.com)

More from Headlines