Creditors of ailing Taeyoung Engineering and Construction are set to begin due diligence on the troubled builder this week after the firm's debt restructuring was approved in a vote last week.

According to the financial authorities on Sunday, the state-run Korea Development Bank (KDB), the main creditor of the builder, sent a request for a proposal to select an accounting firm to conduct the due diligence right after creditors voted to start the workout process last Thursday.

An official in the financial industry said that an accounting firm will be selected early this week and launch due diligence on the financial health of Taeyoung as early as later this week.

Samil Accounting Corporation is the most likely to be selected to carry out due diligence on Taeyoung's assets and liabilities and an evaluation of its ability to survive.

The core of the due diligence is to decide measures on some 60 project financing (PF) projects in which Taeyoung is participating.

In the process, conflicts are expected between the financial institutions that directly lent money to Taeyoung and those that gave loans for PF projects. To address the possible conflicts, a joint committee will soon be formed.