Hanwha Energy sale may not meet debts

18 May 1998 00:00  [Source: ACN]

The Hanwha Group, under pressure to speed up negotiations for the sale of Hanwha Energy, may not even cover the debts of the oil refiner from any such sale.

'The replacement value and therefore the possible price for the refinery is around US$550m,' said George Goundry, a chemicals analyst with Abn Amro. 'Its total liabilities are between US$1.3bn and US$1.8bn.'

Hanwha Chemical, which has a 28% stake in Hanwha Energy, has guaranteed Won581bn (US$3.4m) of loans to Hanwha Energy and a Hanwha Energy subsidiary.

China Petrochemical Development Corp (CPDC) is interested in acquiring Hanwha Energy (ACN 27 Apr, p4).

At stake are Hanwha Energy's 270 000 bbl/day refinery and its production of 100 000 tonne/year of benzene, 100 000 tonne/year of toluene and 40 000 tonne/year of mixed xylenes.

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