Lotte Chemical Creditors Meet Brings Korea Risks Into Focus
- Lotte Corp says chemical unit has enough money for repayments
- Korea’s 2022 project finance default has investors on edge
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Lotte Chemical’s surprise move to call a creditors meeting to remove a clause in its bonds covenant is bringing into sharp focus the risks investors face from exposure to interest rates sensitive industries in South Korea.
Lotte Corp, the holding company of one of South Korea’s biggest conglomerates, said Thursday that some bonds issued by its affiliate Lotte Chemical may fail to meet interest coverage ratio clause, requiring it to schedule a bond holders meeting in December to discuss deleting the clause.