Taeyoung Construction Proposes Additional Workout Measures
"Boldly Streamline PF Project Sites That Need to Be Organized"
Yoon Se-young, the founding chairman of Taeyoung Group, stated on the 9th, "If the existing self-rescue plan is insufficient, we will definitely save Taeyoung Construction by using TY Holdings and SBS shares as collateral."
On the morning of the 9th, Yoon Se-young, the founding chairman of Taeyoung Group, held a press conference at the Taeyoung Construction headquarters in Yeouido, Seoul, and announced a statement regarding additional self-rescue plans to initiate a workout. / Photo by Yonhap News
Chairman Yoon held a press conference at Taeyoung Construction headquarters in Yeouido, Seoul, on the morning of the same day, saying, "TY Holdings, major shareholder Yoon Seok-min, and I, the founder, have given assurances to the creditors," and added, "In addition to the contents included in the existing self-rescue plan, we also plan to secure and inject additional funds through the sale of other affiliates or providing collateral."
Previously, Taeyoung Group announced four self-rescue measures: ▲supporting Taeyoung Construction with 154.9 billion KRW from the sale of Taeyoung Industry ▲pursuing the sale of Ecobit and providing proceeds ▲providing collateral and pursuing the sale of Blueone shares ▲providing collateral of Pyeongtaek Silo shares.
If more than 75% of the creditors agree on the 11th and enter a workout (corporate financial restructuring), Taeyoung Construction will undergo due diligence and prepare a detailed corporate improvement plan. Taeyoung expects liquidity shortages to be resolved by April when the plan is finalized. However, if necessary, they explained that they are willing to also provide TY Holdings and SBS shares as collateral, expressing their determination to pledge all major shareholder shares.
Chairman Yoon pointed out, "The reason Taeyoung Construction is currently facing difficulties is largely due to our excessive ambition, and also because existing project financing (PF) loans could not be rolled over due to factors such as high interest rates and a real estate market downturn." He emphasized, "We will decisively liquidate projects that need to be closed among PF sites and preserve healthy projects to successfully complete the business."
He added, "We will show this not just in words but in actions," and said, "We will definitely normalize Taeyoung Construction to minimize damage to creditors, partner companies, and buyers, and to prevent shocks to the national economy."
Yoon Seok-min, chairman of Taeyoung Group, also took the stage. Chairman Yoon said, "I feel infinite responsibility for causing a great burden on the national economy and deep concern to the public, government, and creditors due to this situation," and added, "We will do everything possible to normalize Taeyoung Construction and minimize damage to all parties related to the creditors and us."
TY Holdings injected the remaining 89 billion KRW of the 154.9 billion KRW from the sale of Taeyoung Industry, which was pledged to support Taeyoung Construction the previous day. TY Holdings stated, "By applying for a workout, we have completed the promise to directly support Taeyoung Construction with the 154.9 billion KRW from the sale of Taeyoung Industry (113.3 billion KRW from TY Holdings shares and 41.6 billion KRW from Chairman Yoon Seok-min's shares)."
On the same day, it also disclosed that it borrowed a total of 43 billion KRW from affiliates and the owner family. Specifically, it borrowed 10 billion KRW on a one-year term as a short-term loan from affiliate Blueone and borrowed 33 billion KRW from Yoon Jae-yeon, daughter of Chairman Yoon and CEO of Blueone. As collateral, 1,172,000 shares of SBS stock are provided to Yoon Jae-yeon until July 8 of next year. The interest rate is 4.6% per annum.
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