Lotte Group “Real estate and available deposits alone amount to 71.4 trillion won… stable liquidity” (comprehensive) | Yonhap News

“Group real estate assets alone amount to 56 trillion won, available deposits alone amount to 15.4 trillion won.”

“Manage the financial stability of affiliates and secure sufficient liquidity when necessary.”

“We are carrying out group-wide asset efficiency efforts and profitability-oriented management.”

“Lotte Chemical, available liquidity of 4 trillion won…there is no problem in repaying corporate bond principal and interest.”

(Seoul = Yonhap News) Reporter Seong Hye-mi = Lotte Group announced on the 21st that there is no problem with liquidity, with real estate and available deposits alone amounting to 71.4 trillion won, and that it will make every effort to manage the financial stability of its affiliates.

A hoax hoisted on the Lotte Hotel building

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Lotte Group is Lotte Chemical[011170]As concerns about worsening liquidity related to the corporate bond issue arose, an explanatory material containing these contents was distributed on this day.

Lotte Group said, “As of last month, total assets amounted to 139 trillion won, and the value of stock holdings amounted to 37.5 trillion won,” adding, “The group’s total real estate value was 56 trillion won based on last month’s evaluation, and it also holds 15.4 trillion won in immediately available deposits. “We are maintaining stable liquidity,” he explained.

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He said, “Lotte is carrying out asset efficiency work and profitability-oriented management across the group to improve its financial structure.”

Lotte Group, especially Lotte Chemical,[011170] He emphasized that the pending issues related to corporate bonds were caused by the decline in Lotte Chemical’s profitability due to the recent downturn in the petrochemical industry, and that there were no problems by securing sufficient liquidity.

Lotte said, “Since 2018, the chemical industry’s profits and losses have deteriorated due to oversupply due to the accumulation of new facilities and China’s self-sufficiency rate has increased,” adding, “Accordingly, Lotte Chemical has issued performance-related provisions within the provisions of the private loan management contract for some public corporate bonds. “We ended up not complying with the financial special agreement,” he explained.

He went on to say, “The relevant clause has been deleted from recently issued corporate bonds,” and added, “Currently, Lotte Chemical is sequentially conducting discussions with private bondholders.”

At the same time, he emphasized, “Lotte Chemical has secured available liquidity funds of 4 trillion won as of last month, so there is no problem in repaying the principal and interest of corporate bonds. We will announce the convening of a meeting of private bondholders next week and plan to hold a meeting of bondholders next month to adjust special terms.” did it

Lotte Group said, “Regarding this pending issue (Lotte Chemical), Lotte Holdings[004990] “We will manage it so that it can be resolved smoothly through close communication with the main creditor bank,” he said. “The group will continue to maintain stable management through smooth consultation with affiliates and do its best to manage financial stability by securing sufficient liquidity when necessary.” “I plan to retire,” he said.

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2024/11/21 09:47 Sent

How ⁣do ⁢fluctuations in the corporate‍ bond market potentially impact Lotte Chemical’s⁢ ability to meet its financial obligations and maintain​ stable operations?

Guest 1: Mr. Park, a financial expert⁣ from ‌Seoul National University, can you provide ‍your insights on‍ the liquidity concerns surrounding Lotte Group and the measures⁢ they ‍have ⁢taken to‍ alleviate these worries? How significant is the impact of the corporate bond issue on their overall financial stability?

Guest‍ 2: ⁤Ms. ⁣Lee, a business analyst from Morgan Stanley, what ⁣are ‍your thoughts on ⁤Lotte⁤ Group’s asset efficiency efforts and profitability-oriented management strategy? Do you think this approach will be effective in improving their financial structure and mitigating‍ future risks?

Guest 1: Regarding Lotte⁢ Chemical’s liquidity concerns,⁢ what are your views on their available‍ liquidity funds of 4 trillion won and their plan to hold a meeting with private bondholders next week? How likely is it that they ‌will be able to ‌repay their corporate bond principal and interest on time?

Guest 2: There has been recent news regarding Lotte Chemical’s ‌financial performance and non-compliance with financial‌ special agreements.‍ In your​ opinion, what challenges does ‌this pose for the company’s future operations? ‌Additionally, how did ‍such⁢ an ​issue arise in the first place, and ‍what ‌steps need to⁤ be taken to prevent ⁤similar situations⁢ from occurring⁢ again?