SEOUL (Reuters) – Creditors of Taeyoung Engineering & Construction have agreed to provide up to 400 billion won ($300.5 million) in additional funds to the South Korean builder, primary creditor Korea Development Bank (KDB), said on Friday.
The decision will allow the normalisation of management and help operations until a restructuring plan is established, KDB said.
The additional funding follows a vote by creditors last month to carry out the debt-restructuring programme the company filed for in December.
Taeyoung E&C’s 4.58 trillion won of debt has raised concern over the possibility of contagion, prompting the government to pledge that it would work with the central bank to deploy market stabilising measures if needed.
Taeyoung E&C is the construction arm of Taeyoung Group, one of South Korea’s largest conglomerates. TY Holdings, the group’s holding company, is a major shareholder in broadcaster SBS.
($1 = 1,330.5100 won)
(Reporting by Hyunsu Yim; Editing by David Goodman)
