Wednesday, April 25, 2018
Liquidity Problem Forces E-Land Group to Decide to Sell off 3 Hotels
Suffering Liquidity Issue
Liquidity Problem Forces E-Land Group to Decide to Sell off 3 Hotels
  • By lsh
  • August 17, 2017, 03:30
Share articles

The E-Land Group decided to sell off E-Land's hotels and leisure facilities including Kensington Jeju Hotel.
The E-Land Group decided to sell off E-Land's hotels and leisure facilities including Kensington Jeju Hotel.

 

As the E-Land Group decided to sell off E-Land's hotels and leisure facilities, it is garnering a lot of attention whether the sell-off of them will save E-Land which is in a liquidity crisis. 

Recently, according to related industries and the Korean media, e-Land Park's liquidity is deteriorating. E-Land Park's current ratio steadily declined from 49% in 2014 to 47% in 2015 and 35% in 2016.

It is said that this situation may have compelled the E-Land Group to put up for sale Kensington Jeju Hotel, Pyeongchang Kensington Flora Hotel and Pocheon Bears Town.

The E-Land Group also said that E-Land Cruz could be sold off even though it is low on the list. E-Land Park founded in 1982 for the purpose of engaging in the general tourism business and the condominium business has been performing poorly due to its weak competitiveness in the leisure business. 

Its hotel division is slated for renewal and sell-off. A number of its non-operating business sites are giving rise to a spike in fixed costs and its weak brand power and an unfavorable business environment are resulting in snowballing operating loss.

E-Land has been preparing various financing plans such as the sale of a stake to transform into a holding company and a financial improvement. The company lowered its debt-equity ratio to 200% by repaying over 2 trillion won (US$1.8 billion) through the sell-off of Modern House this year. If the sell-off of E-Land's hotels and leisure facilities is completed, its debt-equity ratio will be further lowered.