(LEAD) Bourse suspends trading of Kumho Industrial on receivership rumors

(ATTN: RECAST lead; ADDS details in para 4-8)
SEOUL, Feb. 8 (Yonhap) -- Shares of Kumho Industrial Co. were suspended on the
Seoul bourse on Monday amid market rumors that the financially embattled company
may file for bankruptcy protection, the bourse operator said.

The Korea Exchange called for the construction unit of Kumho Asiana Group to
respond to the market speculation by 6:00 p.m. Monday, suspending its share
trading before the stock market opened at 9:00 a.m.
The suspension will be cleared 30 minutes after Kumho Industrial comes up with an
answer, according to the KRX.
Creditor banks agreed on Dec. 30 to restructure debts by the group's two units --
Kumho Tire Co. and Korea Kumho Petro Chemical Co. -- after the local conglomerate
fell under a massive cash obligation stemming from the group's purchase of South
Korea's fourth-largest builder Daewoo Engineering & Construction Co.
After the closing of regular trading at 3:00 p.m., the creditors said they will
keep the two units under debt-restructuring as the family owners of the group
agreed to creditors' demands to put up their entire stake in the group's units as
collateral.
The decision by the owners came amid media speculation that the creditors will
end their debt restructuring program and put Kumho Industrial under court
receivership after the company's owners missed a Sunday deadline to put up their
stock holdings and other assets as collateral for fresh loans.
The market speculation pummeled other units of the group on the Seoul bourse,
sending the second-largest air carrier Asiana Airlines down 5.71 percent to end
at 3,305 won (US$2.82)
Korea Kumho Petro Chemical dived 9.55 percent to 16,100 won while Kumho Tire also
tumbled 5.83 percent to settle at 3,070 won.
pbr@yna.co.kr
(END)

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