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(Photo = Yonhap news) |
[Alpha Biz=(Chicago) Reporter Kim Jisun] Taeyoung Engineering & Construction, which is undergoing a workout (corporate restructuring project) process, is now in a state of capital erosion. Taeyoung Construction explained that it was an inevitable result of the workout process.
According to the electronic disclosure system on the 14th, Taeyoung Construction's total capital as of the end of last year was minus 562.6 billion won.
With KRW 5.8429 trillion more in debt than KRW 5.2803 trillion in assets, the company is in a state of capital erosion.
Taeyoung Construction said in a public announcement that it reflected the expected loss of real estate project financing (PF) operations due to the launch of the joint management process.
Taeyoung Engineering & Construction said contingent debts at its PF business are likely to be reduced from the results of the latest settlement as stakeholders, including major groups, go through the process of finalizing ways to normalize each business in a way that minimizes losses.
In the future, the company plans to quickly establish a corporate improvement plan and normalize management as soon as possible by expanding capital through conversion of investment. Through this, he said he will do his best to graduate from the workout as soon as possible.
Taeyoung Construction's stock trading will also be suspended due to the capital erosion.
In the event of capital erosion, stocks are immediately suspended in accordance with the securities market disclosure regulations (Article 40). Whether it falls under the reason for delisting will be finalized according to the results of the external auditor's final audit opinion on the financial statements.
If you are notified of the reason for delisting, you can file an objection with the exchange in the process.
If the objection is accepted, a maximum of one year of improvement period will be granted through deliberation. During this period, the improvement plan will be implemented, and after the end of the improvement period, the exchange will review by the Listing Disclosure Committee and decide whether to maintain or abolish the improvement plan.
AlphaBIZ Paul Lee(hoondork1977@alphabiz.co.kr)
