E-Land subsidiaries put on KIS watch list
[THE INVESTOR] E-land Group’s liquidity risks have heightened as its profitability deteriorates and struggles to deliver funds, said Korea Investor Service, adding its flagship subsidiaries E-Land World and E-Land Retail to its watch list for ratings downgrade.
The IPO of E-Land Retail, a key self-help plan of the retailer, has been postponed and there are too many variables that could hamper its business, said the credit ratings agency.
The worsening profitability led to a crunch in delivering funds and expanding risks, while the reconstruction scheme is still shrouded in uncertainties, added the agency’s report.
Even when the group does sell off its divisions with decent cash generating capacity and profitability, its capability to garner profits will inevitably weaken. The and pressure for a credit rating downgrade will be higher, it added.
E-Land Group has restructured since the latter half of 2015, selling real estate worth 430 billion won so far and apparel brand Teenie Weenie for 1 trillion won last year. It is currently negotiating sales of 18 restaurant and café chains as well as a lifestyle goods franchise Modern House.
By Hwang You-mee (email@example.com)