Hyundai Seeks Early Close on Legal Control of KiaHyundai is trying to attain official and legal control of Kia Motors' management, ahead of schedule, so as to normalize operations of its car industry. With full legal control, its restructuring might be smoother.
A source from Hyundai said on January 27, 'There are a lot of barriers under the current situation. For instance, we always have to get approval on any personnel exchange above the managerial level from the court. Moreover, we are finding our external credibility in a tenuous situation: it is hard to issue more bonds or raise investment capital.'
Hyundai will be enforcing massive adjustments to Kia. It concluded there is absolutely no need to leave Kia as it is until 2008 even after Hyundai takes Kia over completely.
Hyundai will pay back a billion-dollar securities-issued debt on March 28 to advance its merger with Kia.
The Seoul District Court commented, 'When we receive adjustment requests from Hyundai regarding Kia's management, we consult bank creditors, who still basically control Kia, on the appropriate decision.'
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