Hyundai had originally owned the bankrupt construction company - Hyundai - before it was handed over to banks in a debt for equity swap. After the banks had turned the business around Hyundai was picked as the prospective buyer so the whole cycle of running it into the ground could begin again, but it then lost the right to buy the company when separately, Hyundai raised doubts about Hyundai's ability to come up with the 4.96 trillion won necessary to pay creditors.
At a tense meeting last year in January, eight major creditors had approved a proposal to sign a memorandum of understanding to sell Hyundai to Hyundai after Hyundai lost out its rights to purchase the company. In response, Hyundai promised to file a series of lawsuits against the creditors of Hyundai to prevent Hyundai signing a new memorandum of understanding with Hyundai.
But Hyundai said last week it was dropping the charges of 'spreading lies' and defamation against Hyundai. In response, Hyundai said it would also end several countersuits against Hyundai.
Hyundai Motor, Hyundai Group end legal battle
Hyundai is Preferred Bidder for Bankrupt Hyundai
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