Hana Rejects Bailout Pledge

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Hana Rejects Bailout Pledge

The bailout plan for Hyundai Engineering & Construction Co. hit a snag Thursday when one of its creditors, Hana Bank, balked at a pledge made by the other creditors to take over up to $750 million of the builder's convertible bonds.

"Although the major creditors, including Korea Exchange and Hanvit Bank, agreed to take over the bonds that have not been converted into stock, we will not go along with the decision," a Hana official said. "It's unfair that only eight creditor banks should be exposed to those potential losses."

The creditors were ready to submit documents to the Financial Supervisory Service regarding the convertible bonds, but will now have to delay the move due to Hana's refusal.
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