SEOUL, KOREA - It is estimated as much as 1 trillion won of capital injection would be needed to normalize the operations of Ssangyong Engineering & Construction currently under a workout program.

According to banking sources on April 25, Samjong KPMG LLC has recently submitted results of a due diligence on the contractor and said it would require 920 billion won to help the company get back on its feet.

 

Creditor banks including Woori Bank, the principal creditor, will hold a creditors meeting on the 26th to decide whether to go ahead with the workout program.

 

The accounting firm's due diligence revealed that at least 360 billion won will be needed to make payments for goods supplied and complement the working capital. An additional money of 240 billion won must be disbursed for payment guarantees related to ongoing overseas projects.

 

According to the due diligence results, Ssangyong E&C will need a 150-billion-won debt-to-equity swap in addition to the already-implemented swap of 170 billion won. The total volume of the debt-to-equity swap for the contractor would be 320 billion won.