Creditors control Hyundai

Thu, 19 Apr 2001 | Source: AFP

SEOUL (AFP): Creditors have taken control of Hyundai Engineering and Construction Co., South Korea's biggest civil engineering firm, amid growing doubts about its future, officials said on Wednesday.

Creditors sent supervisors on Monday to oversee and regulate HEC's cash flow and business operations, the Financial Supervisory Commission (FSC) said in a statement.

The FSC warned that the collapse of the company could leave losses of more than US$7 billion, including $4.9 billion overseas from unpaid debts to foreign banks, contract penalties and uncollected payments.

The creditors' move reflects worries that Hyundai Engineering cannot repay maturing debts despite the injection of emergency loans.

By the end of June, the company needs to repay $150 million owed to foreign creditors, and 450 billion won ($338 million) in promissory notes and bills to suppliers.

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