DRAFT
Appendix
to Press Release
Hyundai's financial position
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 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 Hyundai made certain assurances regarding various receivables.
These assurances were 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 ΟΙ guarantees from core companies in their business group.
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