"I'm going to go bankrupt in December." Rumors of a crisis...It turns out that Lotte is rich in land. [Y Record]

Lotte to give it as collateral for the group's symbol 'Lotte World Tower'

Increased stability by adding bank guarantees to corporate bonds

Lotte Chemical provides the World Tower as collateral for adjustment of its corporate bond special agreement

Lotte to provide 'Lotte World Tower' as collateral for banks

Lotte Group revalues assets in collateral for Lotte World Tower

Lotte Group's Financing Plan...Can we quell the rumors of a crisis?

■ Host: Kim Sun-young Anchor
■ Starring: Jeong Chul-jin, Economic Critic

* The text below may differ from the actual broadcast content, so please check the broadcast for more accurate information. Please specify [YTN NewsNOW] when quoting.

◇Anchor> I think we need to talk about Lotte, which is rumored to be in crisis. According to the news, Lotte Tower, the symbol of Lotte, came out as collateral. What's the point of this?

◆Jeong Chul-jin> We said that Lotte Group went bankrupt in December in an information magazine called "Jirashi" at this time, and that's not true, but the market was already in a situation where the stock price had plummeted. I don't think I could have hesitated anymore. This is because if the rumor bites, the fire will spread to the bond market. In practice, it is difficult in the Lotte Chemical corporate bond market, but about 2 trillion won is already held without the deadline, which creditors can sell. Since it's such a situation, wouldn't it be quite dangerous from here on out? So I rushed to respond very actively. Yesterday, we gathered bondholders holding corporate bonds and talked about self-rescue measures, and Lotte World Tower, which is said to be more than 6 trillion won in market price, will be paid as collateral for the banking sector. So, Lotte Chemical said, "Don't fluctuate if you have corporate bonds now, and all of them will be repaid after maturity." Second, Lotte is rich in land. Because distribution is one of the pillars. Wasn't there distribution and construction? So the market revaluates the land owned by all affiliates. What this means is that in our case, the land is valued at the acquisition cost rather than the market price, but in that case, if we put it back at the market price, it would be more expensive. It's going to have the effect of making your assets bigger. Then, it has the effect of looking fairly solid in the apparent financial statements, and some even say that the land of all affiliates will be reevaluated at the market price, and Lotte Group is now actively responding to it in earnest.

◇Anchor> However, given that Lotte Tower is now offered as collateral, the liquidity crisis doesn't seem to be a simple problem, but as you said, if you think about it easily if you sell it if you have a lot of land and real estate, you might think that the company will improve quickly.

◆Jeong Chul-jin> But it's not that easy. Lotte has more than 70 trillion cash equivalents right away when it first asked how to borrow 35 trillion won, and Lotte doesn't sell. We said what kind of liquidity crisis it was, but we always experienced it during the IMF, and there's a liquidity crisis like this. On the other hand, the car we raise cash on is always late, right? With such a mismatch, I don't think it's an issue to respond leisurely. Like this, it's right to respond faster, more aggressively, and excessively.



Excerpted from the conversation: Lee Mi-young, editor of the digital news team

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