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[Alpha Biz=(Chicago) Reporter Paul Lee] Taeyoung Group eventually decided to implement the existing self-rescue plan proposed to creditors, including the Korea Development Bank.
According to the financial authorities on the 8th, Tae-young expressed her intention to implement all four self-rescue plans previously proposed to the Korea Development Bank.
Earlier, Taeyoung applied for a workout and promised to provide Taeyoung Construction with the proceeds from the sale of Taeyoung Industries, but it was controversial because it did not properly implement it.
Regarding the additional self-rescue plan, it is said that coordination between creditors and Taeyoung is needed. Creditors believe that they need to secure liquidity using stakes in SBS or TY Holdings in order to restore sincerity and trust for the workout in addition to implementing the existing self-rescue plan.
According to the investment banking industry, TY Holdings borrowed 400 billion won from global private equity fund KKR with a 50 percent stake in Ecobit as collateral, which included a "share-taking clause" in contracts between shareholders at the time. If the total debt of TY Holdings exceeds KRW 130 billion, the clause is known to be invoked.
Meanwhile, the creditors' council, which will make a final decision on whether to start a workout for Taeyoung Construction, is scheduled for the 11th. The workout will begin only when 75% of the creditors agree.
Alphabiz Reporter Paul Lee(hoondork1977@alphabiz.co.kr)
