PG.14%
5.
DRAFT
In March 1992 Hyundai indicated that it was unlikely that its Iraqi receivables and promissory notes would
be paid at least within the next six months.
6.
Subsequently the Hong Kong Government suggested
that a guarantee by core companies (as offered originally by Hyundai) be signed and that a letter of credit be established
in Hong 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.
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
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
capital to complete the project. To do so, the Government would have to accept bad debts from the Middle East
of sufficient working capital. acceptable to the Central Tender Board.
as
evidence
This is not