Hanbo Construction declared bankrupt<\/p>\n
SEOUL (AFP): The construction arm of South Korea's failed
\nHanbo Group was officially declared bankrupt yesterday, a major
\ncreditor bank said.<\/p>\n
Korea First Bank deputy director Lee Ha-Jung told AFP that
\nHanbo Engineering and Construction Co. Ltd. had defaulted for the
\nsecond time on promissory notes owed to it worth 6.5 billion won
\n(US$7.3 million) by the close of business yesterday.<\/p>\n
Under South Korean law a firm becomes officially bankrupt
\nafter the second default. The first default was Thursday.<\/p>\n
The bankruptcy brought to five the number of key subsidiaries
\nof Hanbo, including its main steel-making flagship, to go out of
\nbusiness since the Hanbo Group crumbled in January under $5.7
\nbillion of debt.<\/p>\n
The collapse of the country's 14th largest conglomerate
\ntriggered a political uproar when prosecutors found it had
\nobtained loans without collateral by bribing top figures in the
\ngovernment.<\/p>\n
A former home minister, four MPs and two bankers were jailed
\nand are now under trial along with the group's founder, Chung
\nTae-Soo and one of his executives.<\/p>\n
The opposition has also accused a son of President Kim Young-
\nSam of being at the core of the scandal, although he was
\nofficially cleared by prosecutors.<\/p>\n
Hanbo Engineering and Construction Co. is engaged in four
\nmajor overseas contracts worth a total of $474 million -- a
\nmilitary barracks and a shopping and condominium complex in
\nIndonesia, a highway project in Pakistan and a multi-purpose dam
\nin the Philippines.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/hanbo-construction-declared-bankrupt-1447893297",
"image": ""
},
"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
}