To: Ian Stromberg who started this subject
From: sylvester80 Sunday, Nov 5, 2000 8:11 PM ET
Reply # of 60277
Looks like Hyundai is going under fast. I can see Samsung stepping in with a possible buyout of some of the pieces
quote.bloomberg.com.
11/05 19:21
Hyundai Eng. Shares Down 15% on Debt-for-Equity Swap Plan
By Kyunghee Park
Seoul, Nov. 6 (Bloomberg) -- Hyundai Engineering & Construction Co. fell by the 15 percent daily limit after its creditors offered a debt-for-equity swap for Korea's largest contractor to avoid a court receivership.
Hyundai Engineering -- the company the Hyundai Group was founded upon in 1947 -- is struggling under debts of 5.1 trillion won ($4.5 billion), and creditors have warned it won't be granted new loans.
A debt-for-equity swap would mean Hyundai, the nation's No 2 conglomerate, and founder Chung Ju Yung could lose control of the unit.
Hyundai Engineering shares dropped 230 won, or 15 percent, to 1,320.
Financial Supervisory Commission Chairman Lee Keun Young said yesterday Hyundai Engineering's cash-raising measures shouldn't just be confined to the effort of the company itself but should include the parent.
``I'm talking about a constructive plan on the part of Hyundai Group (led by founder Chung Ju Yung and son Chung Mong Hun) that the market can understand and accept,'' Lee said. ``So far, Hyundai has not managed to keep to its word of the previous three times it came up with reform measures.''
Hyundai Engineering plans to announce its self-rescue measures this week, which may include stake sale in Hyundai Group's affiliates held by the founding Chung family and the sale of a reclaimed land, although a definite date has yet to be set.
Korea Exchange Bank, the major creditor bank of Hyundai Engineering, said the it plans to send a letter to the cash- strapped construction unit early this week, proposing the debt-for- equity swap.
The company would also have to clarify plans to raise 380 billion won to meet its target of 1.6 trillion won by the end of the year, the company's major creditor, Korea Exchange Bank, said. |
