Lotte Engineering, DL&C Face $700M+ Exposure as Home Plus Bankruptcy Proceeds

According to Korea Ratings and Data, on July 7, Lotte Engineering and DL&C face significant financial risks as Home Plus entered bankruptcy proceedings. The two South Korean construction companies provided credit guarantees for subordinated loans on Home Plus store properties, exposing them to potential cash outflows.

As of July 3, their combined project financing guarantee obligations reached 871.9 billion won, with Lotte Engineering accounting for 729.4 billion won and DL&C for 142.5 billion won, Korea Ratings data showed. If senior creditors declare loan acceleration, the construction firms must immediately fulfill redemption obligations.