Nintendo Shares Slide After Earnings Miss Raises Switch 2 Margin Concerns 
SpaceX Updates Starlink Privacy Policy to Allow AI Training as xAI Merger Talks and IPO Loom 
Japan Finance Minister Defends PM Takaichi’s Remarks on Weak Yen Benefits 
China Services PMI Hits Three-Month High as New Orders and Hiring Improve 
Asian Currencies Strengthen as Indian Rupee and Australian Dollar Rally 
Taiwan Urges Stronger Trade Ties With Fellow Democracies, Rejects Economic Dependence on China 
Jensen Huang Urges Taiwan Suppliers to Boost AI Chip Production Amid Surging Demand 
China and Uruguay Strengthen Strategic Partnership Amid Shifting Global Order 
Australian Scandium Project Backed by Richard Friedland Poised to Support U.S. Critical Minerals Stockpile 
Gold, Silver, and Platinum Rally as Precious Metals Recover from Sharp Selloff 
Panama Supreme Court Voids Hong Kong Firm’s Panama Canal Port Contracts Over Constitutional Violations 
Nvidia Confirms Major OpenAI Investment Amid AI Funding Race 
Japan Services Sector Records Fastest Growth in Nearly a Year as Private Activity Accelerates 
Paul Atkins Emphasizes Global Regulatory Cooperation at Fintech Conference 
Oil Prices Steady as Markets Weigh U.S.-Iran Talks, Dollar Strength Caps Gains 
Trump Extends AGOA Trade Program for Africa Through 2026, Supporting Jobs and U.S.-Africa Trade 
SpaceX Seeks FCC Approval for Massive Solar-Powered Satellite Network to Support AI Data Centers 
Lotte Group has teamed up with Meritz Securities Co. to address the debt mess which Lotte E&C is facing. The two set up a KRW1.5 trillion joint fund to support the struggling engineering and construction company, which is an affiliate of the Lotte Group.
Lotte Group and Meritz Securities will work together to bring in liquidity amid the credit crunch in South Korea. As per Pulse News, business insiders said that the companies agreed to the creation of a $1.18 billion support fund for Lotte Engineering and Construction firm. The companies are scheduled to sign the agreement on Jan. 9, Monday.
The money will help Lotte’s construction arm in its multi-million dollar real estate project financing (PF), including the repayment of debt at maturity. Some of the Lotte Group’s major affiliates, such as the Hotel Lotte Co., Lotte Corp., and Lotte Fine Chemical Co., will also help after they were listed as those that will be responsible for part of the funding requirement,
The companies will have to give KRW600 billion in total as subordinated creditors. On the other hand, Meritz Financial Group’s affiliates, including Meritz Securities, Meritz Fire & Marine Insurance, and Meritz Capital, will handle the remaining KRW900 billion as a senior creditor.
The money is set to be used to buy some maturing asset-backed commercial paper (ABCP) guaranteed by Lotte E&C. Help pours in for the construction firm after its parent company, the Lotte Group, implemented self-rescue measures by calling up its group affiliates to ask them to provide financial support for Lotte E&C.
The construction firm plunged into a liquidity crisis after the developer of the Legoland theme park in Korea defaulted and caused a huge problem in the local public debt market.
“We believe that Lotte E&C currently has enough liquidity to calm concerns caused by a temporary financial market crunch in 2022,” Business Korea quoted an official at Meritz Securities as saying in a statement. “We look forward to seeing our partnership with Lotte E&C further solidified.”
