DAEHO AL Reports KRW 16.7 Billion Loan Delinquency at 17.66% of Equity Deepening Financial Distress
DAEHO AL disclosed a total KRW 16.72 billion loan principal and interest delinquency on USANCE dollar-denominated debt owed to Korea Development Bank. The overdue amount represents 17.66% of its equity.
The delinquencies occurred from June 2 to July 15, 2026, due to insufficient repayment funds. The company is currently negotiating repayment schedule adjustments and other terms with the financial institution.
The auditor disclaimed an opinion on the 2025 financial statements, so equity is based on end-2024 figures, indicating serious accounting transparency issues.
With a delinquency ratio of 17.66% of equity, the company's liquidity crisis is materializing. Potential capital erosion and risk of shareholder value dilution exist if forced equity issuance occurs during restructuring.
[AI Summary]DAEHO AL's massive loan delinquency signals a collapse in financial soundness, compounded by a disclaimer of audit opinion, maximizing management and accounting risks. The outlook for resolving the short-term liquidity crisis is uncertain, sustaining downward pressure on the stock price and posing severe loss potential for existing shareholders.