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[Alpha Biz=(Chicago) Reporter Paul Lee] According to the construction industry on the 2nd, both Lotte Engineering & Construction and Hanyang are arguing that they are the largest shareholders of Gwangju Central Park SPC 'Bitgoeul Central Park Development'.
As the Gwangju District Court recently ruled in favor of Hanyang's K&G Steel over the shareholder ownership dispute within the Gwangju Central Park operator, Lotte Engineering & Construction said it repaid some of the debts guaranteed by Lotte Engineering & Construction and executed collateral rights on 49 percent of the shares subject to the ownership dispute. Since then, SPC has convened a board meeting to approve shareholders' changes following the execution of Lotte Engineering & Construction's collateral rights, which will allow them to participate as shareholders as well as construction rights.
However, Hanyang immediately refuted Lotte Engineering & Construction's claim. On the 26th of last month, the Gwangju District Court ruled that Hanyang should pay 49 billion won in damages and transfer all 25 percent of its SPC shares held by Woobin Industrial Co. to Hanyang in a damage suit filed by Hanyang in violation of a special agreement between shareholders against Woobin Industry. As a result, Hanyang will hold a total of 55 percent, adding 25 percent to its existing 30 percent stake, making it the largest shareholder of SPC. Previously, the Gwangju Central Park Special Business Consortium established SPC with a 30% stake in Hanyang, 25% in Woobin Industry, 24% in K&G Steel and 21% in Park M.
However, this is confirmed only after the final judgment is made as a result of the first trial. Hanyang believes Lotte Engineering & Construction Co. and Woobin Industrial Co. intentionally declared default in the process of repaying bridge loans, mindful of losing the lawsuit.
According to Hanyang, Lotte Engineering & Construction Co., Woobin Industrial Co. and Hub Asset Management Co. secured 995 billion won in project financing (PF) in late September, repaid 700 billion won out of 710 billion won in bridge loans on the 13th of last month and declared default on 10 billion won. Since then, Lotte Engineering & Construction has taken over its debt, implemented its fundamental rights (right to collateral), and acquired a 49% stake in SPC's Woobin Industry to become the largest shareholder of SPC.
Hanyang plans to take legal action, including criminal charges, against related agencies as soon as possible.
AlphaBIZ 폴 리(hoondork1977@alphabiz.co.kr)
