Published : 2013-09-29 11:09
Updated : 2013-09-29 11:09
Cash-strapped Tong Yang Group will face an important hurdle in its ongoing liquidity crisis this week, as about 110 billion won ($102.3 million) worth of its corporate bonds and commercial paper come due on Monday.
Tong Yang and the Financial Supervisory Service (FSS) said the manufacturing and financial services conglomerate will have to redeem 90.5 billion won in corporate bonds and 19.5 billion won in commercial paper on Monday.
The group is struggling to secure liquidity through the sale of its key affiliates, such as appliance manufacturer Tong Yang Magic, but the outlook for such deals is uncertain. The sale of Tong Yang Magic, for instance, is expected to generate about 100 billion won in cash.
The conglomerate has reportedly issued 60.6 billion won worth of corporate bonds but has yet to secure 49.4 billion won, group and FSS officials said.
Even if the first hurdle is overcome this week, Tong Yang still has nearly 500 billion won in corporate debts coming due next month, the officials said.
By the end of this year, at least 1.1 trillion will be needed to help Tong Yang overcome its liquidity crisis, they added. (Yonhap news)