Taeyoung Construction, which has entered workout proceedings, is continuously expanding its operating funds. TY Holdings, the holding company of Taeyoung Group, announced on the 23rd that it raised 140 billion KRW by securitizing the assets of two Blueone golf courses as part of its self-rescue plan.
The securitized assets include Blueone Yongin CC and Sangju CC. A mid-sized construction company, H Corporation, invested under a 3-year sale-and-leaseback agreement. Through this, TY Holdings secured a total of 200 billion KRW in funds. Of this, 140 billion KRW, after repaying 60 billion KRW in loans for Yongin CC, will be used as operating funds for Taeyoung Construction..
The sale-and-leaseback method allows for quick cash procurement and is commonly used instead of outright sales, which take more time due to negotiations. Taeyoung explained that this was also considered due to unfavorable sales conditions, such as a significant drop in the price per hole of golf courses.
TY Holdings stated, "We have been pursuing asset securitization with Mark Asset Management since last month, but it took time to recruit and contract with multiple fund investors." They added, "Meanwhile, other investors appeared, and negotiations with H Corporation proceeded the fastest." It is reported that only ten days elapsed from the expression of interest in participating in the asset securitization to contract signing and payment with H Corporation.
The funds raised this time will be used to support Taeyoung Construction’s operating funds, such as payments to partner companies, if there is a shortage. Until the establishment of a corporate improvement plan and the signing of an implementation agreement in April-May, Taeyoung Construction must independently manage operating funds like payments to partner companies, but there is a risk of shortage due to unpaid receivables from clients.
To alleviate concerns, Taeyoung Construction’s creditors also agreed to proceed with a loan agreement of 400 billion KRW in the form of a credit line (overdraft). This was approved as of 6 p.m. at the creditors' council written meeting. Taeyoung Construction is also pursuing support for a new 400 billion KRW guarantee from the Construction Guarantee Association.
TY Holdings expects that securing liquidity this time will enable the full-scale start of the workout in the future. Since the originally promised self-rescue plans, such as Blueone asset securitization and the sale of Ecobit, are progressing smoothly, the creditors are also expected to actively participate in role-sharing for the workout based on trust.
Meanwhile, the sale of Blueone The Aners CC and Luna X Golf Course, which TY Holdings and Taeyoung Construction respectively own in the Gyeongju area, is also underway. It is known that 6 to 7 prospective buyers have appeared for each golf course. In particular, Luna X Golf Course, a public golf course composed of four 6-hole courses and a new concept golf course, has no burden of membership refund.
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