Taeyoung Construction Repays 45.1 Billion KRW of External Debt Discounts to Improve Partner Companies' Cash Flow Management

Full repayment to the bank on the 26th-27th
The amount repaid by the partner company will be paid directly

Taeyoung Construction announced on the 28th that it has fully repaid the 45.1 billion KRW accounts receivable secured loan (external loan discount, B2B receivables).

On the 11th, the fate of Taeyoung Construction, which applied for a workout (corporate restructuring) after failing to repay real estate project financing (PF) loans worth around 9 trillion won, is being decided, creating tension at Taeyoung Construction in Yeongdeungpo-gu, Seoul. Photo by Jo Yongjun jun21@

Earlier, the creditors of Taeyoung Construction, including KDB Industrial Bank, approved the repayment of the 45.1 billion KRW external loan discount, which had been deferred due to Taeyoung Construction's workout application, at the 2nd Financial Creditors' Meeting held on the 23rd.

Accordingly, Taeyoung Construction repaid 44.5 billion KRW to the respective banks over two days, on the 26th and 27th. The 600 million KRW that subcontractors had borrowed and directly repaid to the banks was paid directly to those subcontractors.

With the repayment of the external loan discount, the previously reduced discount limit on external loans issued by Taeyoung Construction has been restored, and it is expected that the subcontractors' cash flow will become smoother.

An external loan is when a prime contractor pays subcontractors with accounts receivable instead of cash, and the subcontractors obtain loans from banks using these receivables as collateral.

Taeyoung Construction applied for a workout at the end of last year, and among the 148.5 billion KRW in trade receivables, 45.1 billion KRW of the external loan discount was classified as financial credit and its repayment was deferred.

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