Sale of Hanbo Steel canceled

The Nabors consortium formally announced that it would cancel its contract to acquire Hanbo Steel.

The Korea Asset Management Corp. and Hanbo's creditors are making a legal review of the contract and will work on a countermeasure by holding a meeting of creditors Wednesday.

The KAMCO plans to look for a potential buyer while directly running the company, rather than hurriedly selling the steel maker.

A KAMCO spokesman said that Nabors had informed the creditors that it would cancel the contract because of unsatisfactory preparations by creditors for the sale of Hanbo. Yoon Jae-Chul of the KAMCO said that it was hard to understand that Nabors canceled the contract even though creditors had solved all the requirements that Nabors pointed out, including subcontract and sales network, 200 billion won of credit and the right to use an exclusive pier.

He noted that the KAMCO's lawyers are making a legal study for filing a claim for compensation.