Keystone named preferred bidder for Korea's Dongbu

According to a Dongbu filing, Union Asset Management - which specializes in managing non-performing loans - is the reserve bidder should it fail to make progress with Keystone. The company announced plans to restructure its debt load and operations last year and initially picked Pine Tree Investment as the preferred bidder. However, the deal fell through in December.

Dongbu, the construction arm of conglomerate Dongbu Group, filed for receivership in January of last year, having struggled with its debt burden ever since the global financial crisis. At the time, the company was said to owe creditors, including Korea Development Bank, around KRW261.8 billion ($223 million).

Dongbu's stock peaked at KRW348,000 in October 2007 but is now trading around KRW11,350. The company recorded revenue of KRW644.2 billion in 2015, down from KRW842.5 billion the previous year, while net losses narrowed to KRW64.1 billion from KRW223.2 billion.

Keystone Private Equity was founded in 2012 by Duk-Hoon Lee, who subsequently departed to become CEO of the Export-Import Bank of Korea. The firm makes direct investments and operates fund-of-funds.

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• Topics
• North Asia
• Buyouts
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• South Korea