Tong Yang Group opted for court receivership for three of its affiliates. This came five days after Tong Yang Chairman Hyun Jae-hyun clarified Tong Yang would never be under court receivership

3 Tong Yang units file for court receivership

Kim Yong-young

2013.09.30 11:14:53

Tong Yang Group opted for court receivership for three of its affiliates Monday. This came five days after Tong Yang Chairman Hyun Jae-hyun clarified Tong Yang would never be under court receivership. Tong Yang Group announced Monday that it filed for the corporate revival process for Tong Yang Inc., Tong Yang Leisure Co. and Tong Yang International Inc. The embattled group has been faced with mounting pressure to repay their debts worth 110 billion won ($102.1 million) including corporate bonds and commercial papers (CP) on this day. Reportedly, it has secured around 60 billion won for the repayment but not for the remainder, prompting concerns over the default.
With the filing for court receivership, the three affiliates will appoint their receivers to be under intensive restructuring programs. Other non-financial affiliates in relatively better financial shape will seek ways to improve their management or stand on their own feet after examining market developments in consultation with creditors. In the announcement Monday, Mr Hyun noted, “our affiliates and assets, if sold in an orderly manner, not in a chaotic manner, will be fully appreciated, minimizing investors’ damages. I urge [all employees] to be accountable and cooperative with the court.” 2013-09-29 17:00

Tongyang’s W100 bil. in bonds due

By Kim Tae-jong
The troubled Tongyang Group is expected to Face as its first Big Crisis TODAY IT has to repay maturing Corporate Bonds and Commercial papers worth 110 billion won over.
Tongyang is trying to sell its Affiliates Tongyang Magic Maker Appliance kitchen such as The Cash problem but to relieve Deals have been no Reported yet.
The Group has managed to Secure Only 60.6 billion won, Which is Still short of repaying 90.5 billion worth of 7.7 billion won in Corporate Bonds and Commercial Due TODAY papers.
If The Group succeeded in selling Tongyang Magic, IT The first Big Crisis could overcome.
But there are a series of Challenges from this week.
The Amount of Corporate Bonds and Bills maturing is estimated at 480 billion won next Month, and of them, The TOTAL in Commercial papers this week is slated to mature _ 52.2 billion won at 100.37 billion won Tongyang International, at 39.2 billion won Tongyang Leisure, Inc. Tongyang at 6.5 billion won., The de facto company of The Holding Group, and 2.5 billion won at Tongyang Cement & Energy.
According to market Sources, The Financial authorities Plan to ASK Financial firms to extend The maturity Date of “Healthy” Corporate Bonds and Bills in Order to Stats minimize The Impact of The Tongyang Crisis on The market.
“The government Will Avoid directly Injecting Capital into The Group’s troubled Affiliates, but Asking INSTEAD Will Seek an Indirect Way by The Financial firms to extend Date maturity to Prevent them from going bankrupt, “said a market Insider.
In fact, The Option by Creditors are considering Extending The Date of expiry Tongyang Inc. Corporate Bonds and Bills issued by . and Tongyang Cement & Energy Help them to stay Afloat.
Previously, Nonghyup The Bank Extended Date of maturity of some 11 billion won in Corporate Bonds and Bills on Sept. 26, and the state-run Korea Development Bank also extended the maturity date of 10 billion won worth of corporate bonds and bills as well as letter of credit for imports on Sept. 27.
“It’s hard to inject Fresh Capital into The Group’s Affiliates at The moment, and there has been no request from The Financial regulators for that,” an Official from a creditor Bank said.
But Tongyang Leisure and Tongyang International are Highly likely to Face Bankruptcy as they are expected to fail to Secure Their too unstable Fresh Funds Due to Financial Health.
As a Measure to save itself, The Group has Geared up for Tongyang Magic at The SALE of 250 billion won to KTB PB Consortium.
Tongyang Inc.. has also raised The Liquidity of about 157 billion won this Month by providing its Share in Tongyang Cement & Energy as Collateral.
It Will Not be Easy for Tongyang to issue More Corporate Bills to Obtain Liquidity, as These and Bonds of Tongyang’s Affiliates were Rated as non-investment grade, which means they cannot be sold by the group’s financial subsidiary, Tongyang Securities.

Committee to be formed to rescue CP buyers from Tong Yang

2013.09.30 10:57:06

A committee will be set up to address damages for those who bought commercial papers (CP) from Tong Yang Securities.
Over 1,000 cases regarding the damages from the purchase of CPs from Tong Yang have been reported to the Financial Consumer Agency, showing similar developments to the previous turmoil surrounding subordinated debt issued by savings banks.
The Financial Consumer Agency received reports just in four days that about 1,000 buyers of CPs from Tong Yang Securities suffered from damages worth over 50 billion won ($46 million), according to the financial industry Monday.
In response, the Financial Consumer Agency is set to form a committee dedicated to taking countermeasures for Tong Yang customers including criminal and civil measures.
The group’s head Cho Nam-hee noted, “we are flooded with telephone inquiries regarding CP damages related to Tong Yang and our website is bombarded with reported cases.”
According to the reported cases, some customers were fooled by financial firms’ solicitation that CPs do not incur a loss in the principal and offer higher yields than banks. There were old housewives who were tricked into buying CPs without any idea about what CPs are, simply because they kept deposits in their accounts. Others spent savings for home rental to purchase CPs from Tong Yang.

About bambooinnovator
Kee Koon Boon (“KB”) is the co-founder and director of HERO Investment Management which provides specialized fund management and investment advisory services to the ARCHEA Asia HERO Innovators Fund (, the only Asian SMID-cap tech-focused fund in the industry. KB is an internationally featured investor rooted in the principles of value investing for over a decade as a fund manager and analyst in the Asian capital markets who started his career at a boutique hedge fund in Singapore where he was with the firm since 2002 and was also part of the core investment committee in significantly outperforming the index in the 10-year-plus-old flagship Asian fund. He was also the portfolio manager for Asia-Pacific equities at Korea’s largest mutual fund company. Prior to setting up the H.E.R.O. Innovators Fund, KB was the Chief Investment Officer & CEO of a Singapore Registered Fund Management Company (RFMC) where he is responsible for listed Asian equity investments. KB had taught accounting at the Singapore Management University (SMU) as a faculty member and also pioneered the 15-week course on Accounting Fraud in Asia as an official module at SMU. KB remains grateful and honored to be invited by Singapore’s financial regulator Monetary Authority of Singapore (MAS) to present to their top management team about implementing a world’s first fact-based forward-looking fraud detection framework to bring about benefits for the capital markets in Singapore and for the public and investment community. KB also served the community in sharing his insights in writing articles about value investing and corporate governance in the media that include Business Times, Straits Times, Jakarta Post, Manual of Ideas, Investopedia, TedXWallStreet. He had also presented in top investment, banking and finance conferences in America, Italy, Sydney, Cape Town, HK, China. He has trained CEOs, entrepreneurs, CFOs, management executives in business strategy & business model innovation in Singapore, HK and China.

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