ID :
105412
Tue, 02/09/2010 - 00:33
Auther :
Shortlink :
https://www.oananews.org//node/105412
The shortlink copeid
Kumho's owners to offer stakes in units as collateral
(ATTN: RECASTS lead; UPDATES with more info in paras 4,7-11)
SEOUL, Feb. 8 (Yonhap) -- Creditor banks of cash-strapped Kumho Asiana Group said
Monday they will push for an overhaul of the group as earlier planned after its
owners agreed to put up their entire stake in the group's affiliates as
collateral to ensure its survival.
Kumho's restructuring process has been put on hold as the family has dragged its
feet in taking responsibility for mismanagement by letting a Sunday deadline pass
without taking any action.
Min Euoo-sung, chairman of Korea Development Bank (KDB), warned Sunday that
creditors would withdraw all promises -- debt rescheduling, the supply of fresh
funds and a guarantee of the owner's managerial rights -- if the family does not
provide stakes in its affiliates as collateral.
"Creditors will push for the restructuring of the group as previously planned and
details will be discussed later," KDB, the main creditor, said in a statement.
The move enabled the owners to retain their management rights.
The family's decision set the stage for the group's ailing unit Kumho Industrial
Co. to avoid applying for court receivership while creditors plan to stick to an
original overhaul plan for the group.
Kumho Industrial and Kumho Tire Co. will face restructuring under a debt
rescheduling program, while the group's other two units -- Korea Kumho
Petrochemical Co. and Asiana Airlines Inc. -- will have to improve their finances
through rigorous self-restructuring efforts as earlier agreed with creditors.
According to the group, the family holds a 47.4 percent stake in Kumho
Petrochemical and a 15.03 percent interest in Kumho Industrial, which amount to
around 250 billion won.
The corporate overhaul move came as Kumho Asiana has been reeling under mounting
debt after buying a 72.1 percent stake in Daewoo Engineering & Construction Co.
in 2006 for 6.4 trillion won (US$5.46 billion), a deal mostly funded by a group
of financial investors.
The creditors agreed last week to provide fresh funds worth a combined 380
billion won to Kumho Industrial and Kumho Tire only when the family showed a
genuine commitment to taking responsibility for the groups plight. KDB said
creditors will be able to offer loans to the troubled companies within the week
if their labor unions cooperate.
KDB said members of Kumho's family owners have agreed to manage the group's units
separately.
Park Chan-koo, former chief of the group's chemical division, will co-run Korea
Kumho Petrochemical with his son, while Park Sam-koo, honorary chairman of the
group, will manage Kumho Tire and Kumho Industrial, the bank added.
Kumho Asiana Group owed 15.7 trillion won to financial firms including loans,
bonds and payment guarantees, according to the financial watchdog.
sooyeon@yna.co.kr
SEOUL, Feb. 8 (Yonhap) -- Creditor banks of cash-strapped Kumho Asiana Group said
Monday they will push for an overhaul of the group as earlier planned after its
owners agreed to put up their entire stake in the group's affiliates as
collateral to ensure its survival.
Kumho's restructuring process has been put on hold as the family has dragged its
feet in taking responsibility for mismanagement by letting a Sunday deadline pass
without taking any action.
Min Euoo-sung, chairman of Korea Development Bank (KDB), warned Sunday that
creditors would withdraw all promises -- debt rescheduling, the supply of fresh
funds and a guarantee of the owner's managerial rights -- if the family does not
provide stakes in its affiliates as collateral.
"Creditors will push for the restructuring of the group as previously planned and
details will be discussed later," KDB, the main creditor, said in a statement.
The move enabled the owners to retain their management rights.
The family's decision set the stage for the group's ailing unit Kumho Industrial
Co. to avoid applying for court receivership while creditors plan to stick to an
original overhaul plan for the group.
Kumho Industrial and Kumho Tire Co. will face restructuring under a debt
rescheduling program, while the group's other two units -- Korea Kumho
Petrochemical Co. and Asiana Airlines Inc. -- will have to improve their finances
through rigorous self-restructuring efforts as earlier agreed with creditors.
According to the group, the family holds a 47.4 percent stake in Kumho
Petrochemical and a 15.03 percent interest in Kumho Industrial, which amount to
around 250 billion won.
The corporate overhaul move came as Kumho Asiana has been reeling under mounting
debt after buying a 72.1 percent stake in Daewoo Engineering & Construction Co.
in 2006 for 6.4 trillion won (US$5.46 billion), a deal mostly funded by a group
of financial investors.
The creditors agreed last week to provide fresh funds worth a combined 380
billion won to Kumho Industrial and Kumho Tire only when the family showed a
genuine commitment to taking responsibility for the groups plight. KDB said
creditors will be able to offer loans to the troubled companies within the week
if their labor unions cooperate.
KDB said members of Kumho's family owners have agreed to manage the group's units
separately.
Park Chan-koo, former chief of the group's chemical division, will co-run Korea
Kumho Petrochemical with his son, while Park Sam-koo, honorary chairman of the
group, will manage Kumho Tire and Kumho Industrial, the bank added.
Kumho Asiana Group owed 15.7 trillion won to financial firms including loans,
bonds and payment guarantees, according to the financial watchdog.
sooyeon@yna.co.kr
