Taeyoung Engineering & Construction Co.'s headquarters in Seoul (Yonhap)

Creditors of debt-ridden Taeyoung Engineering & Construction Co. were set to make a decision Thursday on whether to allow the ailing builder to move forward with a debt restructuring program.

Taeyoung, the 16th-largest builder in South Korea in terms of construction capacity, applied for a debt restructuring program late last month due to a liquidity shortage over real estate project financing loans.

The state-run Korea Development Bank, the builder's main creditor, will receive documents from creditors on the decision, which is likely to be announced later in the day.

Earlier this week, Yoon Se-young, founder and honorary chairman of Taeyoung, presented a fresh self-rescue measure, saying that he would put shares of terrestrial TV network SBS and TY Holdings up as collateral if needed.

TY Holdings is a holding company of the builder, and SBS is a cash-generating affiliate of Taeyoung Group.

Shares of Taeyoung had climbed 8.83 percent Thursday as of 9:12 a.m.

Taeyoung has been suffering from a liquidity shortage amid high-interest rates and a slumping property market, and its outstanding PF loans came to 3.2 trillion won (2.4 billion).

Real estate PF loans have emerged as a major risk factor for the country's financial sector and the overall economy. The government has vowed to expand liquidity supply programs from the current level of 85 trillion won, if needed. (Yonhap)