Arab Today, arab today creditor banks urge big firms to improve balance sheets in seoul
Last Updated : GMT 17:16:53
Arab Today, arab today
Arab Today, arab today

Creditor banks urge big firms to improve balance sheets in Seoul

Arab Today, arab today

Arab Today, arab today Creditor banks urge big firms to improve balance sheets in Seoul

Seoul - Yonhap

Creditor banks of South Korea\'s major conglomerates are pressing their debtor companies to improve balance sheets in order to avert a liquidity squeeze following the collapse of Tong Yang Group, industry sources said Thursday. Creditor banks called on Dongbu Group, the 17th-largest firm in Korea, to upgrade its financial soundness via all possible means, including selling assets, restructuring and securing liquidity if necessary, according to bank officials. Other big enterprises including Doosan Group, Hanjin Group and Hyundai Group are also being pushed to revamp their financial structures by their creditor banks for high levels of debt. The move came as Tong Yang Group, South Korea\'s 38th-largest firm, defaulted last week on maturing debts due to cash shortages and filed for court receivership of five of its units including Tongyang Cement & Energy, the second-largest cement producer here. The collapse of Tong Yang Group is the latest in a series of corporate failures that swept the local economy since late last year, when a midsized -- but considered financially sound -- builder and its holding company filed for court protection after failing to tide over the liquidity crunch. Early this year, STX Group, the 13th-biggest conglomerate here, was disbanded and placed under court receivership and a creditor-led debt workout program on fund shortage. Creditor banks picked Dongbu Corp., the construction arm of the group, as a risky one to watch since it has a debt-to-equity ratio of 500 percent and needs to pay back debts worth 780 billion won (US$726 million) by the first half of next year. Hanjin Group has a whopping 1,088 percent debt ratio for its flagship unit Korean Air Lines Co., with a high level of loan dependency of 66 percent for Hanjin Shipping Co. An executive from one of the creditor banks, asking not to be named, said the move is for the financial market to stay alert against \"another STX crisis\" that can come in at any unexpected moment. A spokesman at Dongbu dismissed the default possibility, saying that the builder will have enough funds to cover the maturing debts in time since asset sales have been well pulled off so far. The group is pursuing to secure 430 billion won within this year by selling off its stakes in thermal power and logistics units.

arabstoday
arabstoday

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today creditor banks urge big firms to improve balance sheets in seoul Arab Today, arab today creditor banks urge big firms to improve balance sheets in seoul

 



Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today creditor banks urge big firms to improve balance sheets in seoul Arab Today, arab today creditor banks urge big firms to improve balance sheets in seoul

 



Arab Today, arab today
Arab Today, arab today Arab tradition glitters in Colombia

GMT 12:59 2017 Thursday ,19 October

Arab tradition glitters in Colombia
Arab Today, arab today Second US judge orders freeze

GMT 08:04 2017 Thursday ,19 October

Second US judge orders freeze
Arab Today, arab today Etiquette expert underlines importance of gifts

GMT 17:52 2017 Sunday ,03 September

Etiquette expert underlines importance of gifts
Arab Today, arab today Silent Republicans have their reasons

GMT 16:55 2017 Thursday ,19 October

Silent Republicans have their reasons
Arab Today, arab today Hiring not part of Alibaba pledge

GMT 11:26 2017 Wednesday ,18 October

Hiring not part of Alibaba pledge
Arab Today, arab today
Arab Today, arab today
Arab Today, arab today Sidem reveals plan to improve education

GMT 15:52 2017 Friday ,06 October

Sidem reveals plan to improve education
Arab Today, arab today Ex-French minister Dati wants tough action

GMT 10:54 2017 Thursday ,19 October

Ex-French minister Dati wants tough action
Arab Today, arab today Climate-disrupting volcanoes helped topple

GMT 16:00 2017 Wednesday ,18 October

Climate-disrupting volcanoes helped topple
Arab Today, arab today The history of solar eclipses

GMT 05:16 2017 Sunday ,20 August

The history of solar eclipses
Arab Today, arab today Mercedes says recalls 400,000 UK cars

GMT 06:56 2017 Tuesday ,17 October

Mercedes says recalls 400,000 UK cars
Arab Today, arab today Britain's Vauxhall to cut 400 jobs

GMT 10:53 2017 Sunday ,15 October

Britain's Vauxhall to cut 400 jobs
Arab Today, arab today Hussein Fahmy happy for honoring in festival

GMT 07:47 2017 Tuesday ,17 October

Hussein Fahmy happy for honoring in festival
Arab Today, arab today Three killed, 360,000 without power

GMT 05:11 2017 Tuesday ,17 October

Three killed, 360,000 without power

GMT 09:31 2017 Monday ,16 October

Dalal Abdel Aziz happy for “Seventh Neighbor”

GMT 18:15 2017 Monday ,16 October

British actress becomes fifth woman

GMT 18:29 2017 Sunday ,03 September

Designer produced new set of ornaments

GMT 18:49 2017 Monday ,16 October

India to close colonial-era military farms

GMT 10:46 2017 Saturday ,05 August

Nanis reveals simple ideas for home renovation

GMT 23:42 2017 Monday ,16 October

Better Marriages Make

GMT 06:52 2017 Monday ,16 October

Airbus CEO says won't cling to job

GMT 17:12 2017 Monday ,07 August

Al-Shawaifi reveals secrets of total solar eclipse

GMT 03:59 2017 Sunday ,15 October

US mobile carriers Sprint, T-Mobile to merge

GMT 19:29 2017 Tuesday ,29 August

Yomna: decoration leaved positive effects
Arab Today, arab today
Arab Today, arab today
 
 Arab Today Facebook,arab today facebook  Arab Today Twitter,arab today twitter Arab Today Rss,arab today rss  Arab Today Youtube,arab today youtube  Arab Today Youtube,arab today youtube
arabstoday arabstoday arabstoday arabstoday
arabstoday arabstoday arabstoday
arabstoday
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
arabstoday, Arabstoday, Arabstoday