[비즈니스포스트] KDB Korea Development Bank, Taeyoung Engineering & Construction’s main creditor bank, demanded that Taeyoung Group support Taeyoung Engineering & Construction with the entire proceeds from the sale of its affiliates.
On the 5th, the Korea Development Bank issued a press release titled ‘Creditors’ Position on Taeyoung Group’s Press Release’, saying, “As Taeyoung Group confirmed when it applied for a workout, creditors will again immediately support the 89 billion won that has not yet been provided to Taeyoung Engineering & Construction. “I urge you once,” he said.
▲ On the 5th, KDB Korea Development Bank requested Taeyoung Group to provide the entire proceeds from the sale of its affiliates to Taeyoung Construction. The photo shows a briefing session for creditors held at the Korea Development Bank headquarters on the 3rd. <연합뉴스>
The Korea Development Bank criticized Taeyoung Group for using 89 billion won out of the 154.9 billion won in Taeyoung Industries sale proceeds to jointly guarantee the debt of its holding company, TI Holdings, contrary to what Taeyoung Group promised when applying for a workout.
The Korea Development Bank said, “Taeyoung Construction’s financial situation is very vulnerable as Taeyoung Group only provided KRW 65.9 billion instead of the originally promised KRW 154.9 billion,” and added, “If the majority shareholder does not secure a responsible plan to raise insufficient funds, creditors will go through a workout.” “I find it very difficult to agree to commencement,” he said.
The Korea Development Bank also criticized Taeyoung Group’s claim in a press release on the 4th that it had provided all funds from the sale of Taeyoung Industry to Taeyoung Construction as originally promised to the main creditor bank.
The Korea Development Bank pointed out, “Taeyoung Group’s claim is to distort the funds used for TI Holdings’ joint guarantee debt into supporting Taeyoung Construction for the purpose of maintaining management rights.”
He continued, “The claim that reducing the risk of TIY Holdings is only for the benefit of TI Holdings and to protect individual investors in Taeyoung Construction does not make sense, and further infringes on the interests of various stakeholders, including Taeyoung Construction’s creditors. “It can lead to negative results,” he added.
The Korea Development Bank reconvened major creditors at its headquarters in Yeouido, Seoul from 2 p.m. on this day to discuss Taeyoung Construction’s self-rescue plan.
Creditor banks that attended the meeting on this day included Korea Development Bank, Kookmin Bank, Industrial Bank of Korea, Nonghyup Bank, Shinhan Bank, Woori Bank, and Hana Bank.
The vice presidents in charge of Taeyoung Construction of each bank discussed the contents and implementation status of Taeyoung Construction’s self-rescue plan and discussed the direction of future workouts.
These banks reaffirmed that Taeyoung Construction’s insolvency was caused by excessive business expansion using excessive leverage. A consensus was also formed on the fact that in order for Taeyoung Construction to return to normal through the workout process, the owner’s family and Taeyoung Group must make painstaking self-rescue efforts.
The banks immediately supported the unfulfilled portion of the Taeyoung Industry sale proceeds of KRW 89 billion, which Taeyoung Group confirmed when applying for a workout, and immediately carried out the sale of Ecobit and support for the sale proceeds, provision and sale of Blue One collateral, and provision of Pyeongtaek Cyro collateral. He urged them to do it.
The Korea Development Bank said, “If even these basic prerequisites are not met, we will not be able to secure 75% approval by the 11th, the day of the first council resolution, and we will not be able to initiate a workout,” and added, “All economic damage and social damage resulting from this will not be possible.” “The owner and Taeyoung Group are responsible for the breakdown of trust,” he said. Reporter Cho Seung-ri
2024-01-05 07:44:53
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