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Creditors of the trading arm of South Korea's third-largest conglomerate, SK Group, have threatened to push the unit into court receivership and possibly liquidation, which could lead to the unraveling of its parent.
The move came after negotiations broke down with the trading arm's largest shareholder, the nation's top oil refiner and the de facto holding company of SK Group, which was expected to bail out the trading arm, SK Global.
That holding company, SK Corp., was recently rocked by an accounting scandal in which its chairman was jailed, and is nearly $4 billion in debt. This has left SK Corp. unable to fight shareholders wishing to force it into bankruptcy led by a Monaco- based investment fund that is unencumbered by local political and economic debts.
Negotiations broke down Wednesday, May 28, after SK Corp. gave its "final"...