Taeyoung Engineering and Construction has virtually begun taking steps for a workout with the reactivation of the Corporate Restructuring Promotion Act which aims to facilitate out-of-court workout of financially-insolvent firms. 

An official of TY Holdings, the parent company of the construction firm, told Seoul-based Yonhap News on Wednesday that it is considering all options available when asked if the firm will apply for the financial rescue measure, adding that nothing has been decided yet. 

Such response is in stark contrast to some two weeks ago when the company flatly denied the possibility of a workout when its stocks plunged sharply after related rumors surfaced. 

The construction company, which is suffering liquidity problems due to real estate project financing(PF), is said to be checking out workout procedures and qualifications through a law firm. 

Concerns are rising that if Taeyoung, which ranks 16th in the nation in terms of construction capacity, applies for a workout, the construction industry could face a crisis resulting from PF. 

In the wake of the workout rumors, Taeyoung’s stocks concluded trading after falling nearly 20 percent on Wednesday compared to Tuesday.