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Some 30 debt-laden firms likely to be put under restructuring

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Published : 2014-07-04 21:15
Updated : 2014-07-04 21:15

Some 30 companies are likely to be put under restructuring this year, mostly those in ailing sectors such as construction and shipbuilding that are in a prolonged slump, sources from creditor banks said Friday.

The Financial Supervisory Service and creditor banks have completed assessing the credit risks of companies that have 500 billion won ($495 million) or more in bank loans and are set to soon announce the list of firms subject to restructuring.

Although the national economy still remains dull, bank officials expect the number of companies on the list to be slightly lower this year compared to 40 in the previous year when several conglomerates collapsed due to liquidity shortage.

“The number of companies to be placed under restructuring will be fewer than 40,” a creditor bank official with knowledge of the matter said. “The point of corporate evaluation is not aimed at kicking out troubled companies but at resuscitating them.” (Yonhap)

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