2024-01-06 02:52:01
▲ Governor Lee Chang-yong presiding over the Monetary Policy Committee Photo: Yonhap News
As creditors differ on Taeyoung Construction’s self-rescue measures, concerns are growing that the workout will fail.
Creditors and financial authorities sent an ultimatum to Taeyoung Construction to come up with an effective self-rescue plan by the end of this week.
According to the financial sector on the 6th, creditors and financial authorities are pressuring Taeyoung Construction to change its forward-looking attitude, using this weekend as a deadline.
The reason why the trust between Taeyoung Construction and creditors was broken was how the proceeds from the sale of Taeyoung Industries were used.
TY Holdings, the holding company of Taeyoung Group, decided to support Taeyoung Construction with the entire proceeds of 154.9 billion won from the sale of Taeyoung Industries, but used 89 billion won of this to repay TY Holdings’ joint guarantee debt.
In response, the creditors’ position is that it is only a means to reduce the risk of TY Holdings and maintain the owner’s management rights, and that the full KRW 154.9 billion should be provided to Taeyoung Construction as originally promised.
This weekend is expected to be the biggest critical moment before deciding whether or not to start workouts on the 11th.
If Taeyoung Construction does not implement existing self-rescue measures and the owner family shows no intention to contribute private funds, it is expected that other options, including court receivership, may be discussed.
If Taeyoung Construction enters court receivership, losses to its partners and subcontractors will inevitably increase, and large-scale layoffs are expected to be inevitable.
#Taeyoung #workout #creditors #ultimatum
@ KWANGJU BROADCASTING COMPANY. all rights reserved.
1704518210
#Taeyoung #Constructions #workout #ultimatum…weekends #biggest #challenge
