As JoongAng Ilbo failed to respond to Hanyang Securities' demand for early repayment of 22 billion won in commercial paper (CP) it holds, triggering a first default, Hanyang Securities said it has secured senior collateral and sees no problem recovering the funds.
On the 19th, Hanyang Securities said in a press release that out of the total 30 billion won exposure related to JoongAng Ilbo, it has already recovered about 8 billion won and, following an event of default (EOD), is proceeding with procedures to exercise its contractual rights on the remaining 22 billion won.
In particular, it said there is no problem with the recovery itself thanks to securing senior collateral despite the first default. Hanyang Securities said it has already secured senior collateral and a collateral trust structure, and that the related rights are protected separately from the debtor's general assets and other creditors, adding that they retain independent legal effect regardless of this matter, so there should be no impact on the effectiveness of the collateral rights and recovery.
It added that the recovery of funds from JoongAng Group exposure is proceeding as planned. Hanyang Securities recovered a total of 10.3 billion won over the 16th–17th and plans to proceed with recovery of the remaining exposure through the secured collateral structure. It drew a line that additional loan-loss provisioning is not necessary.
Earlier, Hanyang Securities said its exposure to JoongAng Ilbo and JTBC, among JoongAng Group entities, is 84 billion won. Hanyang Securities expects 73.1 billion won, or 87% of that amount, to be recovered smoothly within the year.