Taeyoung Proposes Additional Self-Restructuring Plan... Creditors Say "First Step to Restoring Trust"

Main Affiliate SBS Shares Pledged as Collateral
Creditors Initially Give Positive Assessment
Workout Suspension If Self-Rescue Plan Fails

Taeyoung Group announced that it could secure necessary funds by pledging shares of its core affiliate SBS if needed in relation to Taeyoung Construction's workout (corporate financial restructuring), and the creditors' group positively evaluated this, stating that "it could be the first starting point to restore market confidence."

On the 28th, Taeyoung Construction, which is experiencing a liquidity crisis due to real estate project financing (PF), applied for a workout (corporate restructuring). The Taeyoung Construction flag is fluttering in the wind at the Taeyoung Building in Yeongdeungpo-gu, Seoul. Photo by Kang Jin-hyung aymsdream@

On the afternoon of the 9th, the creditors' group issued a statement saying, "We positively evaluate Taeyoung Group's announced additional self-help plan and the major shareholder family's willingness to fulfill their responsibilities." Earlier, Taeyoung Group held a press conference attended by founder Yoon Se-young, where they presented the additional self-help measures.

Taeyoung Group first promised to complete the procedures for implementing and committing to the existing four major self-help plans within the day, and as additional measures, proposed ▲ pursuing fund-raising using other affiliates such as SBS Medianet ▲ providing liquidity by pledging TY Holdings shares held by the major shareholder and SBS shares held by TY Holdings in case of worsening liquidity shortage, and supporting Taeyoung Construction.

The creditors' group stated, "The basic principle of the workout is for Taeyoung Group and Taeyoung Construction to raise the necessary shortfall funds through a rigorous self-help plan from the start of the workout until the establishment of the corporate improvement plan," and added, "The plan announced today by the major shareholder is understood as a commitment to comply with and execute this basic principle."

They continued, "The resolution date for the agenda of the first financial creditors' meeting to decide on the commencement of Taeyoung Construction's workout is just two days away," and emphasized, "We hope Taeyoung Construction and Taeyoung Group will promptly request cooperation from each creditor for the initiation of the workout and promotion of normalization based on the additional self-help plan and the major shareholder's responsibility fulfillment plan announced this time."

However, the creditors' group warned that the workout could be halted at any time if Taeyoung Group's self-help plan is not implemented. They also stated, "If even one of the self-help plans promised by the major shareholder and Taeyoung Group is not kept, the workout process may be suspended, and if a large-scale additional insolvency is discovered during due diligence, the workout process will also be halted," adding, "We urge the major shareholder and Taeyoung Group to deeply consider these points, thoroughly manage Taeyoung Construction, and swiftly implement the announced self-help plan and responsibility fulfillment measures to minimize damage and losses to numerous stakeholders including partner companies, buyers, and creditors by making their best efforts."

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