09 July 2001 00:00 [Source: ACN]
LG Chem is the newest contender for all of Hyundai Petrochemical's petrochemical assets, a senior Hyundai source told ACN. LG Chem declined to comment.
Last December, ACN reported that the former LG Chemical was involved in preliminary moves for a three-way merger with Hyundai and SK Corp.
An LG Chemical source had said then that there were 'no substantial talks on this issue yet' but added that 'it would make sense to have such a merger'.
However, the three-way merger option met with little success (ACN 18 Dec, p5). LG Chemical was demerged on 1 April to form LG Chem, LG Chem Investment and LG Household and Healthcare (ACN 16 Apr, p6).
Last November, Hyundai sold its PVC and vinyl chloride monomer (VCM) plants in Daesan to the former LG Chemical for Won105bn (US$81.45m) (ACN 27 Nov, p5).
Hyundai has been set a deadline of 31 October by the creditors to sell its assets. The creditors will replace the board of directors and draw up a long-term recapitalisation plan once its assets sale goes through or when the deadline is up.
The company is also moving ahead with debt restructuring.
Two of the three conditions set by creditors for the finalisation of the new restructuring plan have been met.
The only condition that remains to be met is an agreement by all shareholders of the company to give up their stakes to creditors.
The other two conditions are the resignation of the board of directors, and approval of the debt plan by the company's labour union.
All the creditors of Hyundai have now approved the bailout plan. It involves extending maturities on Won212.1bn in current debt until 31 October, furnishing Won250m in trade financing and Won85bn in fresh loans, said a source from one of the creditors.
The board of directors has agreed to resign. However, it will manage the company until the final recapitalisation plan is drawn up.
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