KFB-named firms fall hard
A day after creditors singled out 16 shipyards and builders as workout or bankruptcy targets, shares in the listed firms among them plunged sharply yesterday.C& Heavy Industries, one of the two firms recommended for bankruptcy by the Korea Federation of Banks on Tuesday, fell by the daily 15 percent limit, losing 100 won (seven cents) to 590 won.
Its affiliate C& Marine lost 10.3 percent.
Among the 14 companies given the next lowest grade, which means they will enter a debt restructuring program, Keangnam Enterprises fell by the daily limit, as did Samho International, Poonglim Industrial and Shinil Engineering.
Neither Daeju Construction, the other firm given a bankruptcy grade, nor the other 10 recommended for restructuring are listed.
The restructuring of troubled firms, initiated at the government’s request, will enter its second phase in months to come as creditor financial institutions, led by the Korea Federation of Banks, plan to look at other shipyards and building contractors.
Lee Jung-min, an analyst with Korea Investment and Securities, said restructuring, aimed at clearing uncertainty out of the market, needs to be implemented more thoroughly.
“The market consensus is that the first phase of the restructuring did not meet the expectation,” she said. “Creditors should be more willing to point to ailing companies.”
The whole construction industry fell 3.6 percent and the shipbuilding industry fell 1.7 percent yesterday.
By Moon Gwang-lip Staff Reporter [joe@joongang.co.kr]
with the Korea JoongAng Daily
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