Taeyoung Group "Private investment in progress... SBS sale faces many legal restrictions"

On the 3rd, Taeyoung Group announced that it will "make every possible effort" regarding the major shareholder's personal fund contribution and the sale of SBS shares, which the creditors demanded as a prerequisite for Taeyoung Construction's workout.

On the afternoon of the 3rd, a creditors' briefing session regarding Taeyoung Construction's workout (corporate financial restructuring) application was held at the Seoul Industrial Bank headquarters. Photo by Noh Kyung-jo

Yang Yoon-seok, Executive Director of Media Policy at TY Holdings, the holding company of Taeyoung Group, held a briefing at the headquarters in Yeouido, Seoul, immediately after the creditors' briefing, stating, "The sale of SBS can be proposed as a method, but since SBS is a licensed business under the Broadcasting Act, there are many legal restrictions," and added, "If the creditors provide guidance during the remaining period, we will thoroughly review it."

He continued, "We are not discussing with a predetermined direction," and explained, "We have continuously informed the creditors about the legal restrictions, but if the creditors or the main creditor bank representing them continue to raise the issue, we will look for possible methods."

Regarding the major shareholder's personal fund contribution by Chairman Yoon Se-young, the founder of Taeyoung Group, and his family, he said, "We fully recognize the necessity and are preparing and proceeding," adding, "There is time until the creditors' decision on the 11th, so we will ensure that the progress is reported through the main creditor bank."

Executive Director Yang emphasized regarding the part where only a portion of the proceeds from the sale of Taeyoung Industry was used to support Taeyoung Construction, "Although we cannot disclose the details in detail, all the sale proceeds have been or will be used to support Taeyoung Construction."

When asked if there are other assets for sale besides Ecobit and Blue One included in the self-rescue plan, he replied, "We will quickly sell any affiliates held at the group level that can be sold." Executive Director Yang explained, "Taeyoung Group and Taeyoung Construction have proactively invested about 1.2 trillion won through self-rescue efforts," adding, "If the sale of affiliates does not proceed quickly, we will create funds by providing collateral to support Taeyoung Construction."

Meanwhile, Chairman Yoon appealed through a statement at the creditors' briefing, saying, "Recent reports indicated that the real estate project financing (PF) scale is 9 trillion won, but the actual contingent liabilities causing problems are about 2.5 trillion won," and added, "If given a chance to properly complete the business and repay the debt, all employees will do their utmost to revive Taeyoung."

He particularly emphasized, "Taeyoung Construction's current order backlog exceeds 12 trillion won, and it is expected to achieve annual sales of over 3 trillion won for the next three years," adding, "The operating profit margin is also 4%, which is better than the average of top companies in the same industry."

The creditors will decide whether to commence the Taeyoung Construction workout at the first creditors' meeting on the 11th. The workout requires the consent of more than 75% of the creditors based on the credit extension amount, according to the Corporate Restructuring Promotion Act.

This content was produced with the assistance of AI translation services.