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On Tuesday, Lee Bok-hyun, chief of the Financial Supervisory Service, speaks during a meeting with heads of financial holding companies to discuss financial affairs for the new year at the Federation of Banks in Seoul. (Yonhap) |
The head of the country's financial regulator insisted Tuesday that a debt workout program requires support for more than just debt payment, as creditors call for ailing builder Taeyoung to present more self-rescue measures for the start of a debt restructuring program.
Lee Bok-hyun, chief of the Financial Supervisory Service, also highlighted the need for the troubled firm to do its utmost to help itself.
"Considering wide support for not only the debt of a debtor but also indirect liabilities and other interested parties once the debtor's determination to rescue its firm is confirmed conforms with the original purpose of a workout program," Lee said while meeting with the heads of seven top financial holding firms here, according to the FSS.
His remarks come one day after TY Holdings, the parent company of Taeyoung E&C, injected an additional 89 billion won (US$67.8 million) into the troubled construction firm, a move that had long been demanded by Taeyoung's creditors.
Taeyoung applied for a debt restructuring program last month due to a liquidity shortage over real estate project financing loans.
Its creditors, led by the state-run Korea Development Bank (KDB), had remained reluctant, saying Taeyoung and its parent company could and should do more first to help themselves.
"A debtor and the main shareholder of a firm do have the need to win the faith of creditors that they will do all they can in the process of a workout program by proposing intensive self-help plans," the FSS chief noted.
He added the government will help mediate complex interests should a debt workout program be launched.
KDB and some 400 other creditors of Taeyoung are scheduled to decide whether to initiate a debt workout program on Thursday, which requires consent from at least 75 percent of the creditors.
