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To: Scumbria who wrote (67325)	3/7/2001 11:52:03 PM
From: Don Green	Respond to of 93625

Hyundai asserts it will cover $52 million default By Jack Robertson, EBN Mar 7, 2001 (6:59 PM) URL: ebnews.com Hyundai Electronics Industries Co. top management said Thursday in Korea that the firm will have a new financial plan with its lenders to cover the missed $52 million debt payment in the U.S. and other obligations. Financial analysts on both sides of the Pacific were surprised when Hyundai Semiconductor America failed to make a $52 debt payment on Feb. 28. The parent Hyundai Electronics in Korea has been under financial pressure for many months, but the first sign that the firm couldn't pay its bills came in the U.S. Nathan Brookwood, principal of InSight 64, a Saratoga, Calif.-based market research firm, said failure to come up with the $52 million is no small matter. "It also is a damaging factor in Hyundai's semiconductor sales efforts with customers, who now take the firm's financial troubles very seriously," he said. Chong Sup Park, chairman of Hyundai Electronics Industries Co., said in Seoul Thursday that the parent electronics company "is working with the banking community to ensure the adequate liquidity to meet the short term challenges, and we have a strong confidence in our long-term business prospects." The firm said it expects to announce its new financing arrangements shortly. The defaulted payment came at an embarrassing time, confirmed on the very day that South Korean President Kim was meeting at the White House with President Bush. Micron Technology Inc., which has loudly protested the earlier Korean government purchase of $1.6 billion in Hyundai corporate bonds, Wednesday was pressing U.S. government officials to pressure Korea not to continue further bailouts of Hyundai. Hyundai Semiconductor America, which operates the firm's fab in Eugene, Ore., is in turn a subsidiary of Hyundai Electronics America, San Jose, Calif., which is 87 percent owned by HEI in Korea.