UAMCO caps first debt takeover deal

The United Asset Management Co., a specialized firm in taking over bad loans held by financial companies, Thursday said it capped the first batch of its investment targets, with the sort-out process for the second batch also in the pipeline. 

UAMCO said it had sealed an agreement with first two main creditor banks -- the state-run Korea Development Bank and KEB-Hana Bank, for the takeover of bad debts extended by two firms in workout deals. The names and details on investments and mergers will be revealed upon closing the private equity fund deal, the bad loan collector added.

UAMCO plans to start the procedure for setting up a private equity fund within February, as soon as the related parties finish negotiations on the prices and size of the limited partners’ investment.

In addition, UAMCO is already in the process of reviewing the second round of investment targets, aiming at reaping visible achievement in the eyes of the financial regulators. The reviewers are slated to pick two to three ailing firms for investment, the company said.

By Chung Joo-won (joowonc@heraldcorp.com)