(Bloomberg) -- Creditors agreed to provide Taeyoung Engineering & Construction Co. as much as 400 billion won ($300.5 million) in additional funds, as the South Korean builder seeks to gain a handle on its finances. 

The step will help the indebted firm keep up operations until a restructuring deal can be agreed upon, Korea Development Bank said in a statement. The person declined to be identified in line with the firm’s policy. 

Taeyoung E&C, whose projects range from skyscrapers in Seoul to sewage treatment plants, rekindled concerns of a credit crunch in January after it announced late last year that it needed to restructure borrowings. Promises by local policymakers of additional funds, if needed, succeeded in calming markets, averting the jump in short-term credit spreads that occurred in 2022 when the developer of a Legoland amusement defaulted. 

Taeyoung E&C won support from creditors last month to start debt restructuring talks, but the beleaguered group is disposing of assets less quickly than hoped. Parent TY Holdings had pledged to sell assets, including its stake in water treatment firm Ecorbit Co. Ltd.

TY Holdings also owns stakes in other businesses including Seoul Broadcasting System, one of the nation’s biggest broadcasters. It has about a 37% stake in SBS, according to a regulatory filing.

Creditors have until April 10 to finish their due diligence of the builder’s financials, with a deadline of the following day for an initial agreement on a restructuring plan. 

The company’s won bond due in July was trading around 63% of par this week, up from as low as 53.5% last month. 

--With assistance from Finbarr Flynn.

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