[Asia Economy Reporter Hyunseok Yoo] Hyunjin Materials announced on the 9th that the payment of 23.9 billion KRW as the interim payment from the sale contract of land and buildings located in Bokjeong-dong, Yangsan-si, Gyeongnam, which it held, has been received, and it will actively work on improving its financial structure through debt repayment.
A company official stated, “Along with the real estate sale, the convertible bond (CB) payment involving the participation of the largest shareholder is scheduled to take place this month as part of the financial structure improvement,” and added, “Additionally, we plan to expand capital through further investment by the largest shareholder.”
On the 25th of last month, Hyunjin Materials disclosed that it would issue CBs worth 8 billion KRW. The largest shareholder, WH Networks, is expected to acquire the CBs, with the payment date set for the 27th. Previously, on the 27th of last month, a CB worth 3 billion KRW was also paid.
WH Networks, which became the largest shareholder in January, is continuously raising funds to focus on improving the financial structure and securing operating funds. Since Hyunjin Materials’ internal settlement showed a capital erosion ratio of 76% at the end of last year, the plan is to increase capital through the sale of idle assets and capital increase by in-kind contributions, thereby reducing debt.
A company official said, “With the largest shareholder actively working on improving the financial structure, we expect the capital erosion ratio to decrease,” and added, “Since the appointment of new management was completed through the extraordinary general meeting of shareholders last month, we will also actively pursue a turnaround in the existing ship engine equipment business performance and promote new business.”
© The Asia Business Daily(www.asiae.co.kr). All rights reserved.
