Taeyoung E&C's creditors to provide further $300 mln of funding

Taeyoung Engineering & Construction

23/02/2024 12:44

SEOUL, Feb 23 (Reuters) - Creditors of Taeyoung
Engineering & Construction  009410.KS  have agreed to provide up
to 400 billion won ($300.5 million) in additional funds to the
South Korean builder, primary creditor Korea Development Bank
(KDB), said on Friday.
    The decision will allow the normalisation of management and
help operations until a restructuring plan is established, KDB
said. 
    The additional funding follows a vote by creditors last
month to carry out the debt-restructuring programme the company
filed for in December.
    Taeyoung E&C's 4.58 trillion won of debt has raised concern
over the possibility of contagion, prompting the government to
pledge that it would work with the central bank to deploy market
stabilising measures if needed.
    Taeyoung E&C is the construction arm of Taeyoung Group, one
of South Korea's largest conglomerates. TY Holdings, the group's
holding company, is a major shareholder in broadcaster SBS.
($1 = 1,330.5100 won)
    

 (Reporting by Hyunsu Yim
Editing by David Goodman)
 ((Hyunsu.Yim@thomsonreuters.com;))