Sultan set to help S. Korea's Hyundai

Sultan set to help S. Korea's Hyundai

SEOUL (Reuters): The Sultan of Brunei has agreed to help out troubled Hyundai Engineering & Construction at the request of visiting South Korean President Kim Dae-jung, a presidential spokesman said on Tuesday.

Sultan Hassanal Bolkiah, one of the world's richest men, agreed after meeting Kim on Monday to expedite the payment of $38 million the tiny sultanate on the east coast of Borneo island owes Hyundai for construction work.

"Hyundai has done construction business in Brunei and there is still a significant amount of payments to be collected," Kim's spokesman, reached by telephone in Brunei's capital of Bandar Seri Begawan, quoted the president as telling the sultan.

"Hyundai is in a difficult situation at the moment, so if Brunei can pay the amount still to be collected, this will help Hyundai," the president said.

Hyundai Engineering, Korea's biggest builder and one of its major employers, barely staved off insolvency last week when creditors agreed to roll over 690 billion won in maturing debt until the end of the year on condition it undertakes rigorous reforms. Hyundai has debts of five trillion won ($4.4 billion).

Sultan Hassanal who met Kim in his golden-domed palace of 1,788 rooms ahead of this week's Asia-Pacific Economic Cooperation (APEC) summit hosted by Brunei, thanked Kim for "bringing this up in a very open manner".

"I agree with the president on the issues regarding Hyundai," the statement quoted Hassanal as saying. "I expect this will be resolved satisfactorily and I will try."

A Hyundai Engineering official said the sultanate owes Korea's biggest builder $38 million.