Tong Yang asks for financial help from Orion

September 13, 2013 Leave a comment

Tong Yang asks for financial help from Orion

Lee Jin-myung, Hong Jong-sung

2013.09.13 17:20:20

Hyun Jae-hyun, Chairman of Tong Yang Group, has asked for financial help from Dam Chul-gon, Chairman of Orion, in efforts to overcome a cash crunch. Tong Yang Group is the former parent company of Orion, South Korea’s major confectionery maker. According to Tong Yang Group on Thursday, the two businessmen, brother-in-laws to each other, met recently to discuss Tong Yang Group’s liquidity crisis. Hyun asked Dam to provide collateral to help the troubled Tong Yang to issue asset-backed securities worth up to 1 trillion won ($919.87 million). Tong Yang wants the money to repay debts that will mature late this year. But sources said Dam did not make his answer immediately. Tong Yang Group plans to issue ABSs based on assets of the group’s key subsidiaries – Tong Yang Cement and Tong Yang Power and Tong Yang Securities – and to liquidate them with Orion’s backing. This plan was recently discussed with the nation’s financial regulators.

Filed under Investing Process, Macro Trends

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