(Bloomberg) -- Creditors of South Korea’s Taeyoung Engineering & Construction Co. will soon be able to learn details of the distressed builder’s restructuring proposal.

Korea Development Bank, the company’s main creditor, will hold an information session with 18 other creditors on Tuesday afternoon to reveal Taeyoung’s restructuring plans for the first time, according to a spokesperson at KDB. The information will include an assessment of the builder’s project financing sites, ways to increase capital and management plans, the spokesperson said. 

KDB will explain the plan to all other creditors afterward. The restructuring deal must win approval of creditors holding at least 75% of Taeyoung’s debt in aggregate through voting. The date when creditors will vote on the restructuring plan will likely be decided Tuesday.

Taeyoung’s troubles have heightened focus on the threat of a broader project finance crisis in South Korea. The same type of funding triggered Korea’s biggest credit crunch since the global financial crisis in late 2022, when the developer of an amusement park defaulted. 

Since Taeyoung asked to restructure its debt late last year, officials have rolled out additional liquidity measures in an attempt to support the property market, giving investors some reassurance. 

While the deadline for agreement on Taeyoung’s restructuring proposal is May 11, KDB aims to get the nod by the end of this month. If creditors let Taeyoung go ahead with the proposal, they will be expected to sign a memorandum of understanding to implement the plan within a month of the agreement.

The news of the creditor meeting confirmed an earlier report from Maeil Business Newspaper.

(Updates with more context about the follow-up procedures in the third paragraph.)

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