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Legoland crisis spreads across corporate world

A default in project financing for the construction of the Legoland Korea amusement park in Gangwon Province has not only caused concerns over the possibility of a series of bankruptcies of securities firms and builders, but has also made it more difficult for big businesses to raise money, according to industry officials, Tuesday. Even before the Gangwon provincial government triggered distrust in the nation s bond market by breaching its promise to guarantee the repayment of the amusement park developer s debts, affiliates of the SK, Lotte and Hyosung groups raised money through primary collateralized bond obligations (P-CBOs) guaranteed by the state-run Korea Credit Guarantee Fund (KODIT). P-CBO has been used mainly by small- and medium-sized enterprises (SMEs) with . ....

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