Taeyoung E&C creditors approve debt restructuring plan

Taeyoung Engineering & Construction

30/04/2024 11:20

SEOUL, April 30 (Reuters) - Creditors of South Korean
builder Taeyoung Engineering & Construction  009410.KS  have
agreed to approve a set of debt restructuring plans, primary
creditor Korea Development Bank (KDB) said in a statement on
Tuesday.
    Taeyoung E&C, the construction arm of Taeyoung Group, one of
South Korea's largest conglomerates, filed for a
debt-restructuring programme in December due to a shortage of
liquidity.
    The plans would reduce major shareholders' stakes by a ratio
of 100 to 1 and raise around 1 trillion won ($724.75 million)
through debt for equity swaps and perpetual bonds.
    With more than 75% of the company's creditors on board as of
late Tuesday, Taeyoung E&C and the creditors' council will go
ahead with the plans with expectations that the company will
become financially sound to receive orders after 2025, KDB said,
welcoming the decision as laying a "cornerstone" to stabilise
South Korea's project financing market.
    

($1 = 1,379.7900 won)

 (Reporting by Hyunsu Yim; Editing by Kirsten Donovan)
 ((Hyunsu.Yim@thomsonreuters.com;))