Hyundai creditors agree debt workout

Hyundai creditors agree debt workout
Published: 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.