Taeyoung Group, the parent company behind the debt-ridden Taeyoung Engineering & Construction, said it will put up its stake in TY Holdings and broadcaster SBS as collateral to secure liquidity, responding to demands calling for a higher level of self-rescue plan. While Taeyoung Group has announced some measures to secure the funds to repay the debts of Taeyoung E&C, including the sales of its resort operator.
Yoon Se-young, founder and honorary chairman of Taeyoung Group, has pledged to offer key stakes of SBS, a major broadcaster in Korea, and TY Holdings, to salvage the group s debt-ridden construction subsidiary, if necessary.
Debt-ridden Taeyoung Engineering & Construction made a U-turn to stick with its initial self-rescue package to avoid court receivership, which could put over a thousand of its subcontractors at risk. The 16th-largest builder in South Korea in terms of construction capacity is expected to unveil additional plans to win creditors' approval by Thursday for the launch of a debt workout program. Taeyoung Group in.
The government has urged Taeyoung Group to implement additional self-rescue measures for its financially troubled construction subsidiary, Taeyoung Engineering & Construction (E&C). This move is seen as essential for the conglomerate to rebuild trust with creditors and secure their agreement on a debt-restructuring plan.
Weeks of irresponsibility concerning Taeyoung Engineering & Construction, the troubled affiliate of Taeyoung Group, is bringing into question the group’s ownership of SBS, a local broadcaster and the group’s most lucrative affiliate, according to market watchers Sunday.