Creditors control Hyundai

Creditors control Hyundai

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.