Taeyoung shares suspended as debt restructuring continues

A construction site of Taeyoung E&C is closed. [YONHAP]

Taeyoung Engineering & Construction's shares were suspended Wednesday due to its negative net asset balance amid debt restructuring.

The state-run Korea Development Bank, the main creditor of the troubled Korean builder, said it is extending the deliberation period for the restructuring plan by up to one month to allow more time before finalizing plans to normalize the company.

Taeyoung, the 16th-largest builder in Korea in terms of construction capacity, applied for a debt restructuring program in December last year due to a liquidity shortage over real estate project financing (PF) loans.

Taeyoung said in a regulatory filing Wednesday that its total assets stood at minus 562.6 billion won ($427.5 million), indicating a negative net worth in which its outstanding liabilities exceed its assets.

In accordance with regulations, the negative net asset balance halted the trading of its stocks on Kospi.

BY SEO JI-EUN, YONHAP [seo.jieun1@joongang.co.kr]