Taeyoung Group’s Bold Move: SBS Stake as Collateral to Save Company

Taeyoung Group to Use SBS Stake as Collateral to Save Company

Taeyoung Group has made a decision to utilize their SBS stake as collateral in an effort to save the company from its current crisis. The announcement was made by Yoon Se-yeong, the founder and chairman of Taeyoung Group, during a press conference.

Efforts to Revive Taeyoung Construction

Yoon Se-yeong expressed his commitment to saving Taeyoung Construction by using their SBS stake as collateral. This decision marks his return to the forefront of management and the first press conference held since the workout crisis.

Collateral Options and Additional Recovery Plans

If there is a shortage of funds, Taeyoung Group plans to utilize the shares of TW Holdings and SBS as collateral to secure the necessary resources. TW Holdings holds approximately 33% of the shares, while the SBS stake accounts for around 37%.

Yoon Se-yeong apologized for the controversy caused by his previous actions and presented additional recovery plans during the press conference. These plans aim to address the financial challenges faced by Taeyoung Construction.

Financial Authorities’ Stance and Warning

The financial authorities have shown a more lenient stance, indicating a willingness to consider the use of SBS shares as collateral. However, the Industrial Bank of Korea, as the main creditor, has warned that the workout process may be halted if additional insolvency issues arise or if the agreed recovery plans are not followed.

Decision Rests with Bondholders

The final decision on the workout will be determined by the bondholders, with a requirement of 75% approval. The sentiment of the smaller bondholders is being closely monitored as their support is crucial in overcoming the crisis in Taeyoung Construction.

Conclusion

Taeyoung Group’s decision to use their SBS stake as collateral represents a significant effort to save the company and revive Taeyoung Construction. The outcome of the workout decision, which will be made by bondholders in the coming days, will shape the future of the company and its ability to overcome the current challenges it faces.