An explanatory meeting to discuss the commencement of a workout for Taeyoung Construction was held on the 3rd, but the creditors expressed dissatisfaction with Taeyoung Group's self-rescue plan. Even though Yoon Se-young, the founding chairman of Taeyoung Group, attended the meeting and read an appeal letter, no concrete self-rescue plan was announced, and the existing plan was not implemented.
On the same day at 3 p.m., the Korea Development Bank held a creditors' meeting for Taeyoung Construction at its headquarters in Yeongdeungpo-gu, Seoul. About 400 people, including creditors' representatives, attended the meeting. Yoon, the founding chairman who recently returned, and other Taeyoung Group officials were also present.
Chairman Yoon appealed to the creditors for consent to the workout. He said, "Over the past few years, we have achieved good results and proven potential through project financing (PF) businesses," adding, "The management's mistake was overconfidence in this potential, leading to neglect of self-management and a painful crisis. Without approval of the workout, it will be difficult to revive Taeyoung."
He also addressed Taeyoung Construction's financial situation, stating, "Recent reports mentioned that the scale of real estate project financing (PF) is 9 trillion won, but contingent liabilities are about 2.5 trillion won," and appealed, "If given the opportunity to properly complete projects and repay debts, all employees will do their utmost."
Attendees reported that Chairman Yoon showed tears and choked up while reading the appeal letter.
However, Taeyoung Group reportedly did not present a clear self-rescue plan during the meeting. There was no mention of the much-anticipated major shareholder's personal fund contribution or the sale of SBS shares. In particular, the previously agreed self-rescue plan with the Korea Development Bank and others was not implemented.
A creditor who met with the Korea Development Bank on the day said, "Overall, we were not satisfied. It was no different from the press releases issued so far," adding, "There was no specific amount mentioned regarding personal fund contributions."
The Korea Development Bank also expressed regret to Taeyoung Group, with its chairman personally involved. The bank is the main creditor holding 200.2 billion won in loan claims against Taeyoung Construction and is overseeing this workout application.
Kang Seok-hoon, chairman of the Korea Development Bank, held a press conference immediately after the meeting and pointed out that Taeyoung Group did not implement the four self-rescue plans previously agreed upon. The four plans are ▲supporting Taeyoung Construction with proceeds from the sale of Taeyoung Industry (154.9 billion won) ▲sale of Ecobit ▲providing and selling Blue One shares as collateral ▲providing collateral for 62.5% of Pyeongtaek Silo shares.
Chairman Kang said, "The workout was proceeding on the premise of these four conditions, but Taeyoung Group only supported Taeyoung Construction with 40 billion won from the Taeyoung Industry sale proceeds, and changed their stance on Blue One shares, saying they would be used to repay debts of the holding company TY Holdings," adding, "We requested a commitment to implement the four self-rescue plans and to announce this at today's creditors' meeting, but Taeyoung Group only asked for help, saying they would try hard."
He said, "It is very regrettable as the main creditor bank that Taeyoung Group is not fulfilling the self-rescue plans initially promised (to the Korea Development Bank)," and added, "We once again request that they sincerely and responsibly fully implement the self-rescue plans and make additional substantial efforts."
Regarding future plans, he said, "From the creditors' perspective, a workout plan without a concrete self-rescue plan is unlikely to receive the 75% consent required to commence the workout," and added, "We plan to repeatedly request Taeyoung Group to make a new promise to faithfully keep their existing commitments."
Meanwhile, the explanatory meeting held ahead of the first financial creditors' council scheduled for the 11th was arranged to confirm Taeyoung Construction's self-rescue plan and discuss the operational standards for the upcoming council.
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