According to a report in The Korea Times, Doosan Heavy Industries & Construction is under pressure to separate its Doosan Infracore and Doosan Bobcat subsidiaries in an effort to save the entire business group from a complete collapse.
The Doosan Group is in the process of finalizing a “self-salvage plan” that it will submit to creditors once all necessary paperwork is done.
Faced with weak orders and financial losses, Doosan Heavy, the flagship unit of the Doosan Group, is laden with debt and showing weak cash flow. The unit maintains a 36.28% stake in Doosan Infracore, which itself has a 51.05% stake in Bobcat. Due to this structure, it’s feared that Doosan Heavy’s credit risks could be passed on to its subsidiaries.
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