SK D&D has hit its lower trading limit on July 14 as it announced plans to improve its financial structure through asset sales, liquidity measures, and a capital increase.
According to the Korea Exchange, as of 1:40 PM, SK D&D's stock was trading at 7,740 won, down 3,310 won (29.95%) from the previous trading day.
The announcement of the financial restructuring has been interpreted as a sign of deteriorating investor sentiment.
In a public disclosure, SK D&D stated that it plans to secure funds for repaying maturing loans and enhancing liquidity and growth resources in response to the prolonged downturn in the real estate market and worsening financing conditions.
To achieve this, the company intends to pursue asset sales and liquidity measures. Additionally, it is considering a rights offering for existing shareholders as a priority.
The company's poor performance is also a concern. SK D&D reported a 22.4% decrease in revenue for the first quarter of this year, totaling 70.3 billion won compared to the same period last year. The company recorded an operating loss of 9.3 billion won, marking a shift to a deficit.
Following a change in its largest shareholder, the company's credit rating has also declined. SK D&D's largest shareholder recently changed from SK Discovery to the private equity firm Hahn & Company Development Holdings. As a result, Korea Ratings downgraded the credit rating of its guaranteed bonds to 'BBB-' and the ratings for commercial paper (CP) and electronic short-term bonds to 'A3-' on June 22.
* This article has been translated by AI.
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