Posted June. 26, 2010 20:29,
Sixty-five companies, including 16 in construction, whose financial conditions have worsened will undergo restructuring, financial authorities said Friday.
Among the 65 companies, 38 will be put under debt workout and 27 will either go under court receivership or be liquidated.
The government will buy 3.8 trillion won (3.1 billion U.S. dollars) worth of nonperforming loans in property project financing at savings banks by injecting 2.75 trillion won (2.3 billion dollars), including 2.5 trillion worth (2.1 billion dollars) of public funds.
Six domestic creditors Woori, Kookmin, Shinhan, Korea Development, Hana and Nongyhup banks gathered at the Bankers Club in downtown Seoul to announce the results of a credit risk assessment of 1,985 large companies with loans worth more than 50 billion won (41 million dollars).
Nine of the 300 largest builders in construction capability received a C grade, which requires debt workout, and seven received a D grade requiring either court receivership or liquidation.
An official at the Financial Services Commission said, The continued slowdown in the construction industry caused 16 builders and 17 construction operators to go on the restructuring list, adding, Among those on the list, five of the 50 largest builders in construction capability are included.
The commission also held Friday a meeting on managing public funds and decided to purchase 3.5 trillion won (2.9 billion dollars) worth of project financing loans at savings banks by injecting public funds worth 2.5 trillion won (2.1 billion dollars).
If combined with the 300 billion won (247 million dollars) worth of nonperforming loans that Korea Asset Management Corp. will buy with its funds of 250 billion won (205 million dollars), the government will buy 3.8 trillion won (3.1 billion dollars) worth of bad loans.