Judul : Exclusive: DS Networks Weighs Court Receivership as Director Resigns
link : Exclusive: DS Networks Weighs Court Receivership as Director Resigns
Exclusive: DS Networks Weighs Court Receivership as Director Resigns
DS Networks, one of the country’s three major developers (project operators), has been identified as facing a court receivership crisis. As the company’s financial condition deteriorated, Representative Director Kim Young-cheol also resigned on the 19th of last month.
According to a Chosun Biz investigation on the 22nd, DS Networks is internally discussing whether to pursue court receivership or a workout. DS Networks has appointed a tax law firm to review the matter and plans to choose between court receivership or reconciliation with the main creditor group, composition. Industry insiders expect a decision within this week.
DS Networks officially denied this, but it was confirmed that the company had analyzed scenarios for court receivership and workout. Multiple sources familiar with DS Networks’ affairs said, “We understand that discussions are underway in collaboration with experts.”
A DS Networks representative stated, “We are not preparing for court receivership and are currently verifying areas where we are financially lacking.”
DS Networks is one of the country’s three major project operators, having ranked first in sales in the project operator industry for three consecutive years from 2020 to 2022. While it aggressively invested during the real estate boom, it appears to have failed to avoid funding difficulties amid the construction industry slump.
The industry views last year’s shift to a deficit as a critical blow. Last year, sales decreased by 9.0% compared to the previous year to 745 billion Korean won, and the company recorded an operating loss of 160.3 billion Korean won, turning to a deficit. In 2023, the operating profit was 45.6 billion Korean won. Large-scale impairment losses occurred during the process of liquidating assets. This means that the deficit grew as the company repaid borrowings.
DS Networks urgently sold off major assets, including the site of the Pyeongtaek Brain City mixed-use complex and the Incheon North Port Logistics Center. It secured approximately 347 billion Korean won in cash to repay debts. Short-term borrowings decreased from 240 billion Korean won to 100.9 billion Korean won over the year, and long-term borrowings fell from 942.1 billion Korean won to 262.3 billion Korean won, but this alone proved insufficient to improve finances. The debt ratio soared from 530% to 745% during the same period.
The company also struggled in sales. As of the end of last year, the sales rate for the Goyang Hyangdong Knowledge Industry Center stood at 43.47%. The sales rate for the Daegu Gamsang-dong Mixed-Use Complex was 51.15%, and that for the Seoul Gil-dong Mixed-Use Complex was 82.16%.
Industry insiders believe that even if DS Networks proceeds with reconciliation with the main creditor group, restructuring will be unavoidable. The company carried out a round of workforce restructuring and organizational downsizing in 2023. DS Networks notified all employees of a gathering on the afternoon of the 23rd.
A representative from a large project operator said, “The project operator industry as a whole has yet to escape the phase of project financing (PF) difficulties,” and “DS Networks aggressively pursued business during the boom period with measures like team-based order battles and expanded incentives, but we believe the side effects have been significant amid the economic downturn.”
Thus the article Exclusive: DS Networks Weighs Court Receivership as Director Resigns
You are now reading the article Exclusive: DS Networks Weighs Court Receivership as Director Resigns with the link addresshttps://www.unionhotel.us/2025/10/exclusive-ds-networks-weighs-court.html
0 Response to "Exclusive: DS Networks Weighs Court Receivership as Director Resigns"
Post a Comment