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Hyundai firms fight enters a new phase

Posted July. 27, 2000 12:42,   


A dispute between two members of the Hyundai family -- Hyundai Heavy Industries Co. and Hyundai Electronics Industries -- over US$220 million has entered a new phase, as HHI has decided to file a lawsuit against HEI as early as July 27.

In the process, the amount of losses HHI is facing and the memorandum that HEI shall not force HHI to shoulder any financial burden have become the major controversial issues.

Once HHI declared to take legal action, Hyundai Group inevitably will witness an unprecedented dispute between its affiliates in court.

A staff member at HHI ruled out any possibility of behind-the-scenes mediation.

¡°Despite several tries to settle the problem by arbitration, HEI has insisted on having its way,¡± he said.

Considering that the outside directors of both companies will not allow the conflict to be settled in an unclear way, legal proceedings are unavoidable.

Nevertheless, HEI seems to be optimistic and believes the trouble will be resolved through mediation.

¡°It will be the best way to solve the problem as soon as possible by sharing a part of the losses that HHI incurred, just as the memorandum reads,¡± an HEI official said.