Hyundai rescue approved

Hyundai rescue approved

SEOUL (AFP): Creditors on Thursday approved a US$2.2 billion aid package to keep Hyundai Engineering and Construction Co. (HEC) alive, bank officials said.

The package was endorsed by 35 creditors in return for the complete writedown of stakes held by key shareholders and management changes, HEC's main creditor, Korea Exchange Bank, said.

The creditors agreed to convert 1.4 trillion won ($1.07 billion) of HEC's debt into shares, along with 1.5 trillion won in fresh funds for new shares and convertible bonds, it said.

Of the 1.5 trillion won, banks will extend 750 billion won through purchases of new convertible bonds to be issued by HEC and another 750 billion won by subscribing to rights issues, it said.

Creditors also approved a proposal that KEB and seven other major banks extend 390 billion won in emergency funds to help the company repay maturing debts by the end of April.