HEC¡¯s request for fresh loans rejected

Hyundai Engineering and Construction (HEC) requested fresh loans from creditor banks in an effort to cope with its temporary cash flow problems, but some banks turned down the request. As a result, the giant local construction firm`s liquidity crisis shows no signs of being resolved, despite the banks¡¯decision to roll over all of its current debts.

The creditor banks reaffirmed that an injection of fresh capital into the ailing firm would not be made until the struggling HEC makes genuine self-rehabilitation efforts, including selling blue-chip stocks like its equity shares in Hyundai Heavy Industry.

According to financial sources, in order to raise 100 billion won in fresh funds to repay some of its 180 billion won in debts, which mature on July 29, HEC urgently requested local banks for about 140 billion won in fresh loans. It called on Nonghyup for 60 billion won, Industrial Bank of Korea for 46 billion won and Hana Bank for 40 billion.