ID :
100935
Mon, 01/18/2010 - 17:47
Auther :
Shortlink :
https://www.oananews.org//node/100935
The shortlink copeid
Kumho Asiana cuts 30 pct of executive positions
(ATTN: RECASTS lead; CORRECTS percent to percentage points in para 2; ADDS analyst's
comment para 7)
By Nam Kwang-sik
SEOUL, Jan. 18 (Yonhap) -- South Korea's Kumho Asiana Group has reduced the
number of its executives by 30 percent, the group said Monday, showing its
willingness to implement strong reforms that will help it resolve liquidity woes.
The reduction is 10 percentage points higher than the 20 percent cut envisioned
under a self-rescue program announced by the group on January 5.
The turnaround scheme also called for the group to trim the wages of senior
executives by 20 percent, offer a month's unpaid leave to all employees and raise
1.3 trillion won (US$1.2 billion) by selling unit assets.
Kumho Asiana dismissed seven presidents at its affiliates on Tuesday. The job
cuts have lowered the number of executives at the group to 159 from 228, it said.
Shares of the group's affiliates staged a rally on the Seoul bourse on news of
the downsizing.
Kumho Industrial, a construction unit of Kumho Asiana, closed up 12.44 percent to
4,925 won, while Korea Kumho Petrochemical rose 5.71 percent to end at 22,200
won. Kumho Tire jumped 8.36 percent to finish at 3,565 won and Korea Express rose
1.73 percent to 58,800 won.
"Investors were heartened by Kumho Asiana's unprecedented layoff of executives,
as it showed its firm intentions for restructuring to its creditors," said Kim
Seong-bong, an analyst at Samsung Securities Co.
Kumho Asiana has faced a credit crunch since purchasing a 72.1 percent stake in
Daewoo Engineering & Construction Co. in 2006 for 6.24 trillion won.
The group borrowed some 3.5 trillion won to make the purchase. In return for the
financial support, the group promised investors that it would buy back their
shares if the share price of Daewoo Engineering & Construction fell below 31,500
won.
On Dec. 30 of last year, Kumho Asiana agreed with its main creditor, Korea
Development Bank (KDB), to put two of the group's units -- Kumho Industrial Co.
and Kumho Tire Co. -- under a debt rescheduling program
Kumho Asiana decided to sell its three units -- Kumho Life Insurance Co., Kumho
Rent-a-Car Co. and Daewoo Engineering & Construction -- to ride out a severe cash
shortage.
ksnam@yna.co.kr
(END)
comment para 7)
By Nam Kwang-sik
SEOUL, Jan. 18 (Yonhap) -- South Korea's Kumho Asiana Group has reduced the
number of its executives by 30 percent, the group said Monday, showing its
willingness to implement strong reforms that will help it resolve liquidity woes.
The reduction is 10 percentage points higher than the 20 percent cut envisioned
under a self-rescue program announced by the group on January 5.
The turnaround scheme also called for the group to trim the wages of senior
executives by 20 percent, offer a month's unpaid leave to all employees and raise
1.3 trillion won (US$1.2 billion) by selling unit assets.
Kumho Asiana dismissed seven presidents at its affiliates on Tuesday. The job
cuts have lowered the number of executives at the group to 159 from 228, it said.
Shares of the group's affiliates staged a rally on the Seoul bourse on news of
the downsizing.
Kumho Industrial, a construction unit of Kumho Asiana, closed up 12.44 percent to
4,925 won, while Korea Kumho Petrochemical rose 5.71 percent to end at 22,200
won. Kumho Tire jumped 8.36 percent to finish at 3,565 won and Korea Express rose
1.73 percent to 58,800 won.
"Investors were heartened by Kumho Asiana's unprecedented layoff of executives,
as it showed its firm intentions for restructuring to its creditors," said Kim
Seong-bong, an analyst at Samsung Securities Co.
Kumho Asiana has faced a credit crunch since purchasing a 72.1 percent stake in
Daewoo Engineering & Construction Co. in 2006 for 6.24 trillion won.
The group borrowed some 3.5 trillion won to make the purchase. In return for the
financial support, the group promised investors that it would buy back their
shares if the share price of Daewoo Engineering & Construction fell below 31,500
won.
On Dec. 30 of last year, Kumho Asiana agreed with its main creditor, Korea
Development Bank (KDB), to put two of the group's units -- Kumho Industrial Co.
and Kumho Tire Co. -- under a debt rescheduling program
Kumho Asiana decided to sell its three units -- Kumho Life Insurance Co., Kumho
Rent-a-Car Co. and Daewoo Engineering & Construction -- to ride out a severe cash
shortage.
ksnam@yna.co.kr
(END)
