Lotte Chemical offering 1.1 trillion won ($815 million) in new shares made sure its loans to subsidiary Lotte Engineering & Construction (Lotte E&C) in short-term liquidity strains would be redeemed by January, and that most proceeds from the new capital will go to EV battery material business.

During an IR event before the rights offering on Monday, LG Chemical assured investors that the funds going to Lotte E&C are redeemable as it has a strong fundamental and order book. The builder is undergoing liquidity due to project financing jitters caused by a default on a public debt related to Legoland Korea.

The three-month loan provided to Lotte E&C expires on Jan. 18, 2023, and the company won’t be rolling it over, said Kang Jong-won, Lotte Chemical‘s chief financial officer.

Earlier on Nov. 18, Lotte Chemical disclosed a recapitalization plan worth 1.105 trillion won ($815 million). It said 500 billion won is for operational needs and 605.0 billion won is for acquiring shares of other company, without specifying the name.

Market is suspecting Lotte Chemical that the company will use proceeds on financing its acquisition of IlJin Materials, planned to take place in February next year, and some to fund Lotte E&C.

Lotte Chemical is the largest shareholder of Lotte E&C with a 43.8 percent stake. The company already has injected 587.6 billion won, including a 500 billion won loan, to help out Lotte E&C. Its financial aid stretches to 900 billion won when including a 300 billion won loan extended by Lotte Chemical’s other subsidiary Lotte Fine Chemical.

Separately, Lotte Chemical said it expects to deliver profit in the fourth quarter. It plans to make a preemptive investment in the electric battery materials business.

On Tuesday, shares of Lotte Chemical lost 2.6 percent to 169,500 won as of noon in Seoul after ending 4 percent higher on the previous day. Lotte E&C is not listed.

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