Lotte Camical approved the adjustment of special corporate bond agreement in Article 2 of 'violation of agreement'

Lotte Chemical succeeded in adjusting the special agreement that caused the violation of financial agreements of corporate bonds worth 2 trillion won due to deteriorating profitability.

Lotte Chemical announced that at today's meeting of bondholders, a financial special agreement related to the performance of 14 public corporate bonds that caused the loss of profits was approved.

The special agreement will be removed after court approval.

Earlier, Lotte Chemical failed to meet the requirement to maintain a three-year cumulative interest compensation ratio of more than five times among the agreements of 14 corporate bonds.

If a reason for the loss of profits occurs, bondholders can demand early repayment before the maturity of corporate bonds, increasing the company's financial burden. To prevent this, the company convened a meeting of bondholders on the 27th of last month and has been discussing to adjust the special agreement.

Also, Lotte Group has also been communicating with the main creditor bank to strengthen the credit of corporate bonds by adding bank guarantees using Lotte World Tower worth more than 6 trillion won.

Lotte Chemical said it has secured 4 trillion won in available liquidity funds, including 2 trillion won in deposits, as of October, and is making every effort to improve cash flow and manage investment risks.