Creditors agree to sell C&Heavy stake overseas

SEOUL, Feb. 9 (Yonhap) -- Creditors of C&Heavy Industries Co. have agreed to
extend their financial workout program for the financially shaky shipbuilder by
one month as they push to offer the company's assets on international auction, a
main creditor for the company said Monday.
Woori Bank said more than 75 percent of the creditors have agreed to the terms,
which call for them to roll over the company's debt by March 13.
The creditors decided to launch a debt rescheduling program for the small
shipbuilder on Dec. 3.
Meritz Fire & Marine Insurance Co., the largest shareholder of C&Heavy, proposed
last month that creditors sell their stakes in the shipbuilder. It has since been
in talks with two unspecified foreign private equity funds.
Meritz Fire holds a 51.48 percent interest in the shipbuilder, followed by Korea
Export Insurance Co. with 21.48 percent and Woori Bank with 4.71 percent.
Last week, C&Heavy's lenders said the shipbuilder is not eligible to receive
creditor support under their risk guidelines.
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