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HEC might get conditional rescue

Posted November. 03, 2000 14:29,   


Hyundai Engineering & Construction (HEC) and Ssangyong Cement are expected to be rescued on condition that they will work out clear self-relief plans to raise funds.

It has been announced that about 30 companies will be liquidated by means of closures or court receivership and that 20 companies, including 10 Daewoo affiliates, Jindo and Shin Dong Bang, will be settled through sales or mergers.

So a total of about 50 companies will be hit by the liquidation plan of the government.

On the other hand, 230 insolvent companies such as Kohap, Kabul, Saehan, Sungchang, Cho Yang, Choongnam Spinning will be rescued. Heads of creditor banks will have a joint new conference at 4 p.m. Friday to announce the list of companies that are subject to liquidation.

"Banks screened 287 insolvent companies and informed selected companies by the Financial Supervisory Service," Chung Ki-Hong, vice chairman of the Financial Supervisory Service, said.

He noted that the target companies will be finalized by Friday morning and will be announced later in the day.

Among the companies to be rescued are Choongnam Spinning, Cho Yang, Sung Chang, Kohap, Saehan Media, Saehan, Byuksan, Shinwon, Kabul, Kabul Spinning, Shinsong, Dongkuk Trading, Shinho Paper and Young Chang Akki.

Officials of the Financial Supervisory Service said that Hyundai Engineering & Construction and Ssangyong Cement are likely to be rescued, as creditor banks don't want to liquidate them based on their projected self-relief packages. However, some banks and secondary financial institutions are strongly opposed to the idea, so the final decision will be made at the creditors' meeting, he said.

Hong Chan-Sun hcs@donga.com