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Kumho Asiana Group's restructuring steps put on hold; could face court receivership

8-Feb-2010 11:39 AM

Kumho Asiana Group’s owners have reportedly rejected a demand by creditors that they offer their stockholdings and assets as collateral for fresh loans (Korea Times, 07-Feb-2010). Following the decision, the company’s creditors stated all restructuring steps would be put on hold, raising concerns that the group would be put under court receivership. Korea Development Bank (KDB) has stated that creditors of financially-troubled Kumho Asiana (parent company of Asiana Airlines) would not guarantee the group’s managerial rights if the owners were unwilling to offer their stock holdings as part of the group’s survival efforts (Yonhap/Korea Herald, 07-Feb-2010). The creditors, led by KDB, decided on 30-Dec-2009 to put Kumho Asiana's units, Kumho Industrial Co and Kumho Tire Co, under a debt rescheduling programme to help the group avert a liquidity crisis.