5-Jan-2010 10:56 AM

Asiana Airlines' debt to be frozen for a year, to enable restructure

Korea Development Bank (KDB) and other financial firms are reportedly likely to freeze debts of Kumho Asiana Group's units, Asiana Airlines and Korea Kumho Petrochemical Co for one year, to enable the restructure of the units (Yonhap News Agency/Korea Times, 04-Jan-2010). They also plan to appoint financial auditors to oversee the money management and restructuring of the two units, while taking equity and other assets held by the firms as collateral when providing fresh loans. Asiana Airlines reportedly holds an estimated USD3.3 billion in debt while Korea Kumho Petrochemical's debt reportedly stands near USD1.9 billion. On 30-Dec-2009, KDB and Kumho Asiana agreed to put two of the group's other two units, Kumho Industrial Co and Kumho Tire Co, under a debt rescheduling programme.

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