Taeyoung E&C, a troubled builder, has filed for court receivership to restructure its debt.
– Taeyoung Engineering & Construction has applied for a debt-restructuring program to tide over a cash crunch.
– Taeyoung E&C is suffering from a liquidity shortage due to real estate project financing (PF) loans amid a slumping property market.
– Taeyoung E&C’s debts were estimated at around 1.9 trillion won ($1.47 billion) with its debt-equity ratio reaching 479 percent.
– Taeyoung E&C’s application of a workout is feared to have repercussions on local construction companies with high exposure to real estate PF loans.
– PF loans refer to loans based on their future cash flows from real estate development projects.
– Delinquency rates of real estate PF loans have recently been rising due to the sagging housing market.
– Local construction companies have been reeling from sluggish apartment sales stemming from high interest rates, combined with soaring prices of construction materials.
Link to the original story: https://koreatimes.co.kr/www/nation/2023/12/419_365907.html?utm_source=fl
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