Finance
(LEAD) Taeyoung's debt workout is exceptional; limited market impact expected: finance minister | Yonhap News Agency
(ATTN: ADDS more remarks in last 3 paras)
SEOUL, Jan. 8 (Yonhap) — Taeyoung Engineering & Construction Co.’s application for a debt-restructuring program would have limited impact on the construction industry, as it is “an exceptional case” in terms of the exposure to real estate project financing (PF) loans, the finance minister said Monday.
Finance Minister Choi Sang-mok made the remarks during a parliamentary session as concerns have risen over its possible spillover effects into troubled peers in South Korea and the overall financial system.
Last month, the ailing builder requested a debt workout due to a cash crunch, and its creditors, led by the state-run Korea Development Bank (KDB), are reviewing self-rescue measures presented by the company to make a decision on whether to initiate a workout process.
Finance Minister Choi Sang-mok speaks during a parliamentary session in Seoul on Jan. 8, 2024. (Yonhap)
“Compared with other construction companies, Taeyoung has been heavily dependent on PF loans, which is a bit exceptional. I think its impact on other builders would be limited,” Choi said.
The government has called on Taeyoung and the creditors to strive further for a settlement, and the government is “open to every possibility and thoroughly preparing for various measures” to stabilize the financial market and protect related companies and consumers.
It requires 75 percent approval from about 600 creditors to initiate the debt-restructuring process, and the final decision will be made during the meeting slated for Thursday.
“The government takes this case seriously and will well manage the situation based on the principle of a workout scheme,” Choi added.
The government cited the risk management regarding PF loans and other vulnerable sectors as one of its key economic policy goals for 2024, and vowed to expand liquidity supply programs from the current level of 85 trillion won (US$64.59 billion) to “a sufficient enough level,” when needed.
Choi, however, dismissed the possibility of the government injecting public funds for the builder and other entities struggling with a cash crunch due to their exposure to PF guarantees.
“Ample liquidity has been provided for normal businesses, but troubled firms have been subject to restructuring. Taeyoung’s workout application is the result of such a process,” Choi said. “The government will handle the matter based on due principles and the evaluation by creditors.”
Taeyoung E&C, the 16th-largest builder in South Korea in terms of construction capacity, has been suffering from a liquidity shortage amid high interest rates and a slumping property market, and its outstanding PF loans came to 3.2 trillion won.
People move to attend a briefing session by Taeyoung Engineering & Construction Co. for its creditor on the recent application for a debt restructuring program in Seoul on Jan. 3, 2024. (Yonhap)
graceoh@yna.co.kr
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Retirement is often associated with greater freedom and the opportunity to enjoy the rewards of decades of work. But for many people, the transition from earning a regular pay cheque to relying on pensions and savings can feel less like a gentle glide and more like standing at the edge of a financial cliff-edge.
A YouGov survey of 6,224 UK adults found that 55% reported that they were concerned about running out of money in retirement and, among these worried respondents, 63% were under 50 years old.
However, the good news is that avoiding a financial retirement cliff-edge isn’t about having extraordinary wealth – it’s about making informed decisions before and throughout retirement.
We spoke to Susan Hope, retirement expert and business development director at Scottish Widows, who shared the following nine practical steps to help you build a retirement plan that can weather life’s uncertainties and give you greater confidence that your retirement years will be defined by peace of mind rather than financial stress.
1. Understand what state pension and credits you are entitled to
“Make sure the cornerstone of your financial retirement income is covered by the state and you’ve got everything you’re entitled to,” advises Hope. “If you go onto the HMRC app you can find out really quickly when your state pension age is and what you are due to get.
“Another important thing to look at on the app is a year-by-year breakdown of your national insurance contributions.”
Hope recommends going back through your working years to make sure that you’ve got credits for every period because if you weren’t working due to unemployment, illness, or were caring for someone, you may be entitled to national insurance credits.
They help ensure you qualify for certain benefits, most notably the state pension, during periods when you weren’t working, were earning too little to pay National Insurance, or were claiming specific benefits.
2. Locate any lost or missing pension pots
“I have a huge bee in my bonnet about the £31 billion of untraced pensions that we have in the UK,” says Hope. “Go back through your LinkedIn or your CV and make sure that none of that £31 billion is languishing somewhere, because that is your money to have.”
Once you know the name of your previous employer or your old pension provider, you can use the government’s free Pension Tracing Service to help find lost pension pots.
3. Look at the UK’s different retirement living standards
“I think it’s really useful to look at the UK’s retirement living standards, because that will give you an idea of how much you’re going to need in retirement, depending on what type of retirement you want to live,” recommends Hope.
Regions Financial Corp. has completed its acquisition of Montgomery-based investment banking firm The Frazer Lanier Company, expanding its municipal finance and corporate investment banking services.
The Birmingham-based financial company announced Thursday that the acquisition has officially closed. Founded in 1976, Frazer Lanier provides investment banking services specializing in municipal and corporate securities and has served corporations, cities, counties and local boards throughout its history.
According to Regions, the acquisition is intended to strengthen the bank’s capital markets capabilities while enhancing services for public sector and institutional clients across its multi-state footprint.
Frazer Lanier has built its business by serving as an underwriter or placement agent for tax-exempt and taxable bonds, helping public entities and organizations access financing.
“Two of our top priorities at Regions Bank are strategically expanding our services and investing in top-tier banking talent,” John Turner, chairman, president and CEO of Regions Financial Corp., said in a news release. “By welcoming experienced bankers from Frazer Lanier to the Regions family, we are connecting Regions’ clients with even greater capabilities while advancing our long-term strategy for growth.”
As part of the acquisition, Frazer Lanier will be integrated into Regions Bank’s Capital Markets division within the company’s Corporate Banking group.
Brian Willman, head of Corporate Banking for Regions, said the two organizations share a similar approach to serving clients.
“Frazer Lanier has built trust by staying close to clients and helping them navigate important decisions,” Willman said. “Together, we can expand that model by bringing more ideas, more capabilities and more connectivity to clients across our markets.”
Regions said the acquisition will expand its municipal finance and investment banking capabilities, strengthen its services for cities, counties and other public entities, and provide clients with broader access to financing and capital markets solutions.
Financial terms of the acquisition were not disclosed.
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