Kukdong Engineering & Construction, the contractor that has graduated from the court receivership just last month, will be sold by its creditors. The creditors including Shinhan Bank will begin selecting underwriters from the next month at the earliest. The company had been sold to Lone Star Funds in 2003, which in turned sold it to Woongjin Holdings in 2007.
Analysts estimated the value of Kukdong E&C at about 70 billion won. The 38th largest construction contractor in Korea in terms of construction capacity posted 346.0 billion won in sales revenue last year. For the first half of this year, its sales revenue was 309.3 billion won, or 89 percent of the last year's sales revenue.
Creditor banks of other insolvent construction companies, including LIG Engineering & Construction, Namkwang Coway, and Ssangyong Engineering & Construction, will try to sell off the companies as they expect the recent government measures to stimulate the real estate market would raise the corporate value.
To this, however, some in the industry said, "Already most construction company assets out on the market have been priced, with little change of value due to the measures announced in July and early September."
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