The Korean liquor company, Jinro, has excluded the investment bank, Goldman Sachs, and other foreign investors from a meeting of creditors to decide the future of South Korea’s largest spirits manufacturer. The exclusion of Goldman Sachs follows the bank’s bid last week to have the company put in receivership.
The move by Goldman Sachs has aroused strong emotions in the country as Jinro produces the national spirit, Soju. The bank has been portrayed as a foreign power attempting to gain control of a part of the country’s national heritage.
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Jinro, which has amassed debts of US$1.4 billion, has asked creditors for time to raise more capital. Goldman Sachs is being backed by Morgan Stanley and other foreign creditors which account for around 20% of the company’s debt.
Domestic creditors account for around 60% of the debt and their views on the issue could influence the Seoul District Court when it rules on the Goldman Sachs petition later this month.
