Taeyoung E&C creditors to submit PF plans this week

[Photo by Yonhap]

Creditors of South Korea’s Taeyoung Engineering & Construction Co., which is undergoing a corporate restructuring process, are expected to complete the submission of plans to deal with the troubled builder’s project financing (PF) project sites by the end of this week.

According to sources from the financial sector on Wednesday, Taeyoung E&C‘s PF lenders submitted plans to deal with about 50 out of 59 PF sites to main creditor Korea Development Bank (KDB).

“We understand that almost all of the PF lenders have submitted their plans and the process is expected to be concluded this week,” said a financial authority official.

Given that the initial deadline for submissions was February 26 2024, the entire schedule has been delayed by about two weeks.

“Deloitte Anjin LLC is looking into the plans submitted for 40 to 50 sites, and there are no procedural issues as we just need to conduct due diligence on the additional sites that will be added in the meantime,” the official added.

It remains to be seen how creditors plan to deal with the builder’s 18 sites that are still in the bridge loan stage before construction begins.

It is reported that many of its PF creditors are in favor of saving the sites, which is in contrast to the market expectation that most of the bridge loan sites will end up in auction or public sale.

The country’s financial authorities, on the other hand, have the view that most of the sites currently in the bridge loan stage are unprofitable and should be dealt with quickly.