Hyundai’s feud with banks intensifie

Hyundai Group on Thursday refused to budge in an intensifying feud with its creditor banks, even as the lenders terminated the provision of new funds to the group. 

From 9 a.m. Thursday, 13 Korean banks, led by Korea Exchange Bank, stopped extending fresh loans to Hyundai Merchant Marine Co. and other Hyundai units, upping the pressure on the group to accept their request for corporate restructuring. 

“There is no change in our stance,” the group said. 

On Tuesday, the conglomerate issued a statement, saying it will not sign the pact with the banks to go under the banks-led balance sheet enhancement program. It said it will pay back all the loans to KEB and change its main bank. 

The group, which owns the nation’s biggest sea bulk carrier Hyundai Merchant and Hyundai Asan Corp., was picked by local creditors in May as one of nine financially distressed conglomerates to improve their financial health.

 

A woman walks past the logo of Hyundai Group outside the group’s head office in Seoul, Thursday. Kim Myung-sub/The Korea Herald