Suit for Damages in Relation with Corporate Bonds Of Korealines Co.
On November 22, 2010, Korealines Co.(“the company”) issued corporate bonds in the amount of 40 billion Korean won through Hyundai Investment and Securities Co.(“Hyundai”) who acted as managing underwriter and distributor of the bonds. Opining as the underwriter on the prospectus, Hyundai stated that redemption of the bonds would be of no concern while domestic and international circumstances might affect the redemption. Also, in advising the investors, Hyundai explained the redemption would have no problem focusing only on the financial stability of the company. At that time, however, the company has been struggling for its bad financial circumstance and the possibility of the redemption was very uncertain. Eventually, the company, on January 15, 2011, two months after the issue of the bonds, filed for bankruptcy.