Notice of cancellation of recruitment for Familiar Elif residents in Geomdan New Town. Geomdan New Town Familiar Elif homepage capture
Shindonga Construction, which applied for corporate rehabilitation procedures to the court, canceled the notice to recruit residents for the ‘Family Elif’ apartment it was planning to build in Geomdan New Town, Incheon.
On the 8th, a notice was posted on the Familiar Elif website saying, “The recruitment announcement is canceled due to circumstances of the business owner.”
According to the industry, Shindonga Construction was originally scheduled to announce the subscription winners on this day, but canceled the tenant recruitment announcement due to the judgment that it would be difficult to proceed with the project further. The complex received applications on the 31st of last month, before Shindonga Construction applied for corporate rehabilitation, but most types were not met.
As the tenant recruitment announcement itself was cancelled, existing subscriptions also became invalid. However, according to relevant laws, the subscription account is considered unused, so subscription account holders can subscribe to other complexes in the future.
The project is also receiving a sales guarantee from the Housing and Urban Guarantee Corporation (HUG), so the apartment construction itself is expected to continue. It is expected that Gyeryong Construction, which is jointly pursuing the project with Shindonga Construction, will acquire a stake in the project, or that Shindonga Construction will continue to participate in the construction after receiving court permission. The existing business rights were owned by Shindonga Construction and Gyeryong Construction in a ratio of 8:2. Korea Housing and Urban Guarantee Corporation (HUG) may select a successor business operator to take charge of construction instead of Shin Donga Construction.
Shindonga Construction, a mid-sized construction company ranked 58th in construction capability evaluation (as of 2024), recently applied for corporate rehabilitation procedures (legal receivership) due to worsening liquidity. Shindonga Construction is known to have been hit hard by a large-scale unsold housing situation that occurred at some of the sites it was responsible for completing, including the Shinjinju Station area townhouse in Jinju, Gyeongsangnam-do and the Uijeongbu Station high-rise residential-commercial complex. In addition, the company’s financial situation deteriorated rapidly due to the failure to convert to main project financing (PF) for the Songsan Green City townhouse development project in Songsan-myeon, Hwaseong-si, Gyeonggi-do, and an increase in construction cost receivables.
Shindonga Construction is going through court receivership procedures again, five years after escaping from workouts in November 2019. Previously, Shindonga Construction applied for a workout in 2010.
Reporter Lee Jeong-in lji2018@segye.com
Source: www.segyebiz.com
