Troubled mid-sized builder Taeyoung Engineering & Construction (E&C) agreed to lay off 22 senior executives and cut salaries by up to 35 percent for the remaining ones, as part of self-rescue efforts to advnace a corporate debt workout program, according to the firm’s main creditor, Friday. Taeyoung Group founder and his son resigned as the builder’s corporate board directors last month. Employees of the construction firm will see their salary frozen through 2026.The developments fuel optimism that the 16th-largest industry player by construction capacity would be able to register a net profit this year.According to Korea Development Bank (KDB), the measures are expected to reduce the builder’s operating expenses to 96.9 billion won ($69 million) this year, down from 126.4 billion won last year. Labor costs will be cut to 38.2 billion won this year, down from 45.7 billion won over the same period. Taeyoung Group founder and honorary chairman Yoon Se-young and his son, Yoon Suk-min, do not hold any titles at the construction firm, as approved during the firm shareholders’ meeting, March 17.
Their roles in turn will be limited to the management of TY Holdings, the builder’s holding firm. The group founder was elected board chair of the holding firm, for the short-term objective of fulfilling responsible management. He will not exercise managerial control of the holding firm. riday’s development is the latest in the months of debt workout initiated in January, prompted by the builder’s default on a project financing debt. The KDB-led creditors discussed the outcome of due diligence and the future course of debt restructuring, Thursday. Specifics will be finalized April 30.They agreed to a plan whereby stakes of the builder’s major shareholders will be reduced 100 to 1. The ratio for minority shareholders will be 2 to 1The builder’s 400 billion won in loans granted before the workout filing will be converted to shares. The remaining 334.9 billion won extended after the workout filing will be converted into hybrids.Half of its unsecured bonds, to the tune of 239.5 billion won, will be converted into bonds. The repayment of the remaining half will be deferred 카지노사이트킹 for three years at a borrowing rate lower than the current 3 percent.