OWN CORRESPONDENT, Johannesburg | Thursday 2.00pm
BANKS owed an estimated R1,3-billion by Hyundai Motor Distributors have told Hyundai Motor Corporation that it has until Friday to back a plan to sell the failed car dealer, or they will liquidate its assets.
”Officials of the Hyundai Motor Company of Korea were today [Thursday] requested by the general body of creditors and liquidators to provide written confirmation to declare their commitment to securing a deal within the next week,” Hyundai spokeswoman Terisita van Gaalen said in Johannesburg.
Hyundai Motor Distributors, a nationwide dealership owned by Zimbabwean entrepreneur Billy Rautenbach that sells Hyundai cars under licence from Seoul, was placed in liquidation on January 11 with debts estimated at 1,3-billion. Its main creditors include Dutch banks ABN Amro, whose exposure is reported to be the largest at around R450-million, and ING Barings, as well as the International Bank of South Africa and Banque Belgolaise of Belgium.
ABN Amro officials declined to comment, citing client confidentiality. Officials at the other three banks were not immediately available for comment. Creditors want to sell the dealership in one piece and back a South African investor who has placed a firm purchase proposal on the table, said one banker involved in negotiations.
But the Koreans, who must licence the franchise, are dragging their heels while searching for a better deal. There is one other potential candidate in the running, but matters had now come to a head, the banker said.
”We gave the Koreans an ultimatum that they had to proceed with one of the investors . . . and asked for confirmation in writing that a deal would get done by the end of next week,” said the banker, who declined to be identifed. He said that if there was no further progress, the creditors would have no choice but to begin disposing of Hyundai Motor Distributors’ assets. — Reuters