Creditors: "If Taeyoung Workout Begins, Procedures Will Proceed Based on Self-Rescue Plan"

San-eun to Convene Creditors' Meeting on 10th
Taeyoung: "Faithfully Implementing Self-Rescue Plan"

On the morning of the 10th, KDB Industrial Bank convened a major creditors' meeting at its headquarters in Yeouido, Seoul, and issued a statement saying, "Through close discussions, the creditors agreed that if the commencement of the workout (corporate financial restructuring) is approved at the 1st Financial Creditors' Council on the 11th, the procedure will proceed based on the self-rescue plan."

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 Jinhyung Kang aymsdream@

The financial institutions attending the meeting included the main creditor bank, Industrial Bank of Korea, the five major commercial banks (KB, Shinhan, Hana, Woori, NH Nonghyup), IBK Industrial Bank, Saemaeul Geumgo Central Association, National Agricultural Cooperative Federation, National Credit Union Federation, Korea Federation of Savings Banks, and the Credit Finance Association.

The meeting proceeded in the order of Tae Young Construction and Tae Young Group presenting their workout promotion plan, Industrial Bank explaining the progress and detailed contents of the self-rescue plan, and discussions on current issues among the creditors. Tae Young Construction stated that if the workout is initiated, it plans to comprehensively review the progress stages and business feasibility of each real estate project financing (PF) site to normalize the projects, establish prompt and close handling measures with the PF lenders, and reorganize focusing on competitive projects such as public and environmental sectors.

Furthermore, Tae Young Group clearly explained the contents of the self-rescue plan announced the previous day by founding chairman Yoon Se-young and chairman Yoon Seok-min, and emphasized their commitment to faithfully implement the plan. At the time of applying for the workout, Tae Young Group promised self-rescue measures including ▲management rights relinquishment, voting rights delegation, capital reduction, and consent to stock disposal for Tae Young Construction shares held by TY Holdings (27.8%), Chairman Yoon (10.0%), and Founding Chairman Yoon (1.0%) ▲providing collateral or sale commitment of Tae Young Construction’s assets ▲support from TY Holdings to Tae Young Construction.

Additionally, as an extra self-rescue measure announced the previous day, Tae Young Group proposed ▲support exceeding the existing secured loan (76 billion KRW) through refinancing or subordinated loans secured by TY Holdings’ stakes in SBS Medianet (95.3%) and DMC Media (54.1%) ▲providing collateral of TY Holdings shares held by affiliates (Yoon Se-young and Yoon Seok-min) (25.9%) and SBS shares held by TY Holdings (36.3%) in case of liquidity shortages during the workout process.

Industrial Bank stated, "At the meeting, the creditors closely reviewed the specific details of the self-rescue plan pledged by the affiliates, Tae Young Group, and Tae Young Construction, and agreed that if the commencement of the workout is approved at the 1st council on the 11th, the procedure will proceed based on the self-rescue plan." It added, "The creditors fully understood the self-rescue plan announced by Tae Young Group and the specific measures for affiliates’ responsibility fulfillment, and reached a consensus that if the plan is implemented as scheduled, the workout commencement, subsequent due diligence, and corporate improvement plan establishment can proceed smoothly."

Industrial Bank also said, "Given the nature of the self-rescue plan requiring the sale of major assets, the creditors discussed the possibility of funding shortages during the due diligence period due to delays in implementation and agreed to continuously coordinate future response measures." It further explained, "In particular, the creditors shared that if even one of the self-rescue commitments made by the affiliates and Tae Young Group is not fulfilled during the due diligence process, or if large-scale additional insolvency is discovered, the workout procedure may be suspended."

Moreover, Industrial Bank stated, "The creditors agreed that if Tae Young Construction’s workout is initiated and proceeds normally, it will minimize losses and damages to many stakeholders including partner companies, buyers, and creditors." It concluded, "The creditors strongly requested once again that the affiliates and Tae Young Group faithfully implement the self-rescue plan and thoroughly manage Tae Young Construction to restore social trust, so that the workout can be successfully carried out."

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