GF 323
CONFIDENTIAL
Hyundai's
機密
financial position
Appendix
to Annex C
In order to be granted the Tsing Ma Bridge Contract, Hyundai, like any other contractor, had to establish
minimum levels of working and employed capital ($6,800,000 each) to be qualified for listing as a Government Approved Contractor for Public Works.
2.
Although Hyundai was able to meet these capital requirements at the time of prequalification in early 1991, the company's position has changed since then. In August 1991, following receipt of
of Hyundai's audited 1990 accounts,
the Government advised the company that it no longer met the listing criteria and sought information as to how the company could maintain its listing.
3.
Subsequently Hyungdai
Hyungdai made certain assurances
These assurances
were
regarding various receivables.
conditionally accepted but it was always made clear to the
company that its continued listing depended upon the assurances bearing fruit at time of award of any subsequent
contract.
4.
It became apparent in the months following
these assurances that Hyundai would not be able to meet them.
At a meeting with the Secretary for Works in December 1991, Hyundai proposed that this shortfall be overcome by means of
guarantees from core companies in their business group.
CONFIDENTIAL ##
機密
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