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Dong Ah Construction Looks for Owner

Posted May. 03, 2006 03:00,   


Will Dong Ah Construction, which had once been a stronghold in the domestic construction industry and had undertaken major development projects such as the Libyan water channels, be able to resurrect?

After filing for bankruptcy in March 2001 and currently undergoing the process of liquidation, credit agencies are trying finding a new owner for Dong Ah Construction.

According to Korea Asset Management Corporation (KAMCO) on May 2, Goldman Sachs and KAMCO will announce a public notice of sale as early as May 8, and receive applications by domestic and international investors by the end of this month.

The aim is to revive the company through legal supervision after liquidation rather than dissolution.

Goldman Sachs and KAMCO chose the legal firms Lee&Ko and KPMG in March and have conducted inspections.

The credit agencies will select primary negotiating partners by the end of June and prepare revival plans for Dong Ah Construction, then apply for court supervision.

A source at KAMCO stated, “It is important for the court to approve the transformation into legal supervision, so when we choose our negotiating partners, we will look into how they aim to manage the company, and not just the price.”

Attention is also focused on whether former CEO Choi Won-suk may be able to return to his position if the Dong Ah Construction resolves the issue on liquidation and sales.

Former chairman Choi had announced several times that “if I can reestablish Dong Ah Construction, I will do my best irregardless of position or pay.”

Kyung-Joon Chung news91@donga.com