By Kim Tae-gyu
Hyundai Group presented documents Tuesday which it contends meets the requirements of the creditors of Hyundai Engineering & Construction (HE&C) whose controlling stakes are on the block.
According to the Seoul-based group, Natixis confirmed in documents that a 1.2 trillion won loan given on credit remains deposited in the account of the second-largest bank in Paris.
It remains to be seen whether creditors, headed by Korea Exchange Bank (KEB), will be happy with the documents since they asked Hyundai Group to present a copy of the loan contract.
``At the request of Hyundai Group, Natixis confirmed once again that the 1.2 trillion won in question was borrowed without involving any collateral or payment guarantee from Hyundai Group affiliates or HE&C,’’ a Hyundai Group spokesman said.
``Natixis also made it clear that the loans do not feature any collateral or payment guarantee to third-party entities like affiliates of Natixis, such as Nexgen Group. We think that this will be enough to meet the demands of creditors.’’
When contacted, KEB said the creditors would convene to check whether or not the documents were sufficient.
The 35-percent stake of HE&C, the country’s largest builder, was put up for sale and Hyundai Group was picked as the preferred bidder last month by offering 5.51 trillion won, beating out favored candidate Hyundai-Kia Automotive Group, which offered 5.1 trillion won.
However, Hyundai Group’s funding plan caused controversy, particularly the 1.2 trillion won in the Natixis account.
The shipping-oriented mid-tier conglomerate claimed that it was a loan on credit without disclosing the contract.
In response, some raised suspicions that they might involve collateral such as stocks or assets of Hyundai Group subsidiaries or even HE&C. Hyundai Group countered with the certificate from Natixis but critics did not give in.