Seoul: Hanwha Group said it has asked a Seoul court to arbitrate a dispute over the return of a security deposit it submitted to the state-run Korea Development Bank (KDB) in its failed bid to acquire Daewoo Shipbuilding & Marine Engineering Co.
Hanwha signed a preliminary deal with KDB last November to buy a 50.4-percent stake in the world's No. 3 shipyard, but scrapped the deal in January due to cash shortages.
Hanwha put down a security deposit of 315 billion won (US$248.4 million) on the fulfillment of the takeover deal.
Hanwha reportedly offered 6.5 trillion won for Daewoo Shipbuilding, but had requested postponement of payment amid a severe credit crunch.
After the breach of the deal by Hanwha, KDB rejected the return of the deposit, saying Hanwha did not carry out the contract and therefore forfeited the money.
Hanwha, however, called on the lender to return even part of the deposit, claiming that the severe global financial crisis made it impossible to fulfill the deal. [22/06/09]
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