Question-and-Answer Session
Operator
(Operator Instructions). Your first question comes from Julianna Balicka - KBW. Please proceed.
Julianna Balicka - Keefe, Bruyette & Woods
I have just a few question mainly if you can just give us a little bit more color and background as to why the investment negotiations are continuing presumably all the way through July 2000 of next year.
What's causing it delay because I thought that they were presumably going to be finished by the year-end or maybe I'm wrong about that? But if you can just give us a little more ideas as to what's going on in terms of regulator approvals and what not on both the Korean and the American side?
Jay Yoo
Well, as we have previously stated we are in active negotiation with a consortium of Korean investor, but we still have to talk to the regulators for carrying their approval. Actually we have satisfactorily completed our mutual due diligence are in active discussion about the (inaudible) and the power structure, which we may get the approval from the Fed.
That's why it’s taking more time than we original planed. But as the regulatory gave us sufficient time, by July 31 next year, we believe that this project will be completed within the given period.
Julianna Balicka - Keefe, Bruyette & Woods
And how are the South Korean regulators approaching this transaction?
Jay Yoo
Well we understand the South Korean regulators are very positive and they are only concerned with Fed approval in the U.S.
Julianna Balicka - Keefe, Bruyette & Woods
And in terms of the second tranche of the leading investment, is there a timeframe on when that will close?
Jay Yoo
Well, as you know the first investment of $6.9 million was already invested in September and the second investment of 5%, $4.1 million, is scheduled to be invested by November 30. But at this moment I assume that would be delayed.
Julianna Balicka - Keefe, Bruyette & Woods
And is there a reasonable timeline and why is it being delayed?
Jay Yoo
Well at this moment as (inaudible) discussed, we actually tried to figure out the right structure and the right size of the investment, together with the Fed and the regulators. So in that process there is a chance of combining the [special] constraints of $4.1 million, it’s a small amount, maybe this combined together with the other tranche, the (inaudible)one.
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