[THE INVESTOR] Daewoo Shipbuilding & Marine Engineering said on June 13 that it plans to sell 793 billion won (US$702 million) worth of new stocks in a bid to strengthen its financial status.

In a regulatory filing, DSME said the new stocks will be sold at 40,350 won apiece to the state-run Korea Development Bank and others, including Woori Bank.

The trading of DSME stocks have been suspended since July last year, due to its impaired capital base.

In March, the KDB-led creditors announced a fresh rescue package for the ailing shipbuilder that has been suffering from a severe liquidity crunch due to heavy losses in its offshore projects.

By Alex Lee and newswires (alexlee@heraldcorp.com)