Creditors rescue Peugeot's Korean importer

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SEOUL, April 28 (Yonhap) -- South Korean creditors signed a contract with Hanbul
Motors Corp. Tuesday to rescue the local importer of French automaker Peugeot SA
with a 20 billion won (US$14.8 million) bailout package, the importer said.
Under the contract, the main creditor Korea Development Bank will inject the
money into Hanbul Motors and reschedule debts owed by the ailing importer by
2011, Hanbul Motors said in a statement.
"We appreciate creditors for trusting the corporate value of Hanbul Motors," said
Song Seung-cheol, head of the importer, in the statement.
As part of the debt-restructuring contract, Hanbul Motors plans to sell some of
its assets to raise working capital, according to the statement.
It's not immediately clear whether creditors receive control of the importer in
return for the bailout.
Officials at Hanbul Motors weren't immediately available for comment.
Hanbul Motors has been grappling with weak sales and shoddy customer services
amid sluggish consumption in South Korea.
For all of 2008, Hanbul Motors posted a net loss of 11.4 billion won on sales of
70.8 billion won, down 23 percent from a year earlier, according to industry
data.
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