Korea’s No. 16 builder Taeyoung E&C files for debt restructuring

Taeyoung Engineering & Construction headquarters in Yeongdeungpo District, western Seoul, is pictured. [YONHAP]

Taeyoung Engineering & Construction (E&C), Korea’s 16th-largest builder, filed for a debt workout on Thursday, the company announced through an electronic disclosure.
 
The builder has been facing a liquidity crisis due to real estate project financing (PF) loans.
 
A workout requires approval from more than 75 percent of creditors and entails addressing liquidity issues through mechanisms such as maturity extensions and fund disbursements.
 
Consequently, the major creditor, the Korea Development Bank, is to assemble a bondholders’ meeting on Thursday morning.
 
The company’s PF loan balance reaches around 3.2 trillion won ($2.4 billion), according to Korea Investors Service.
 
It has encountered obstacles in repaying the loans as some of its construction projects were halted due to high interest rates and increased construction costs.
 
Taeyoung E&C is the construction arm of Taeyoung Group, which owns SBS, one of Korea’s largest broadcasting companies.
 
 

BY SEO JI-EUN [seo.jieun1@joongang.co.kr]