Hyundai creditors agree debt workout

Hyundai creditors agree debt workout
04 June 2010

Creditors of Hyundai Cement Co, a South Korean maker of cement and ready-mixed concrete, agreed on a debt workout for the company, bank officials said Friday.

The creditors, led by the state-run Korea Development Bank (KDB), decided to reschedule Hyundai Cement’s debts by Sept. 3, and will discuss ways to help the country’s No. 3 cement producer get back on track, they said.

The creditors have been seeking a debt workout scheme for the company as it is grappling with rising debt and a debt guarantee for its affiliate.

Hyundai Cement and its affiliate, Sungwoo Engineering & Construction Co., have been facing financial difficulties due to a slowdown in the local construction sector.

Hyundai Cement, which started as a cement business unit of Hyundai Engineering & Construction Co in 1958, was spun off from the construction company in 1969.

It posted a profit of 17.4 billion won (US$14.5m) last year, bouncing back from a loss of 68.2 billion won a year earlier.

But the company, which has an annual capacity of 7Mt of cement, recently shut down some of its plants in the wake of the slumping construction sector.
Published under Cement News