AK Capital and Hanbo Steel to sign final agreement

AK Capital and Hanbo Steel to sign final agreement

The final sales and purchase agreement between the bankrupt Hanbo Iron and Steel and the Korean-foreign joint venture AK Capital is scheduled to be signed in mid December, following the approval of the creditor banks and the completion of court study prior to releasing Hanbo from receivership. The deal was concluded at $ 377 million which is reported to be involving the mill only. After including the fixed assets, inventories, and other components such as a $14 million worth small electricity generating plant within the mill's site, the number is expected to reach $400 million levels. Furthermore, two land parcels that belong to the parent company Hanbo Corp and sister company Hanbo Energy are currently being negotiated, according to reports from the industry. The payments are scheduled to be settled in April 2003. The sale was previously agreed by the Korean Asset Management Corporation(KAMCO) and AK Steel in March 2002. AK Capital, whose largest participant is Chungwo Industrial Co., was selected as the most successful bidder last year, at the international bidding for Hanbo last year. Hanbo searched for a purchaser for more than five years, right after going bankrupt.