DRAFT
5.
In March 1992
Hyundai indicated that is was unlikely that its Iraqi receivables and promissory notes would be paid at least within the next six months.
6.
that a
Subsequently the Hong Kong Government suggested guarantee by core companies (as offered originally by Hyundai) be signed and that a letter of credit be established in Hong Kong
Kong in order to meet the Government's need to be
satisfied that the company could in
fact meet Government's listing requirements.
By its letter dated 10 April 1992, Hyundai declined both requests.
1.
8.
AS is
normal for such tenders, the Government has given Hyundai every opportunity to put its financial position in order. The ultimate requirements were made in an honest attempt to put it in a position where the Government
could have confidence that its financial position would not
cause a high degree of risk that it would default on this
important contract. Hyundai has requested the Government to consider accepting its original accounts as evidence of sufficient capital to complete
to complete the project. To do so, the Government would have to accept bad debts from the Middle East as evidence of sufficient working capital. This is not
acceptable to the Central Tender Board.