Changwon City Appeals as Creditors Consider Seizing 34 Billion Won in Assets
Changwon City is appealing a lawsuit loss to creditors who are considering seizing 34 billion won in assets from the Changwon Industrial Promotion Agency amid a troubled liquefied hydrogen plant project. The creditors have initiated enforcement proceedings that could disrupt operations at eight hydrogen charging stations, raising concerns among users. The city faces criticism for its inadequate long-term debt management as it grapples with the financial implications of a mandatory purchase clause requiring daily hydrogen purchases.
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Changwon City is facing a crisis with its liquefied hydrogen plant project as it lost a lawsuit against creditors and decided to appeal. The creditors are now considering seizing 34 billion won in deposits from the Changwon Industrial Promotion Agency.
They have initiated enforcement proceedings, including filing for the seizure of real estate and debt. Due to a mandatory purchase clause, the Promotion Agency must buy 5 tons of hydrogen daily, leading to daily costs exceeding 100 million won for the city.
If the creditors' actions proceed, it may disrupt operations of eight hydrogen charging stations owned by the agency, raising concerns among hydrogen vehicle users. Changwon City is attempting to minimize inconvenience but faces criticism for lacking a long-term debt solution.
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