Creditors to provide 380 bln won to Kumho Asiana units

SEOUL, Feb. 9 (Yonhap) -- Creditor banks of ailing Kumho Asiana Group decided
Tuesday to offer 380 billion won (US$326 million) in fresh loan to the group's
two units under a debt rescheduling scheme, the group's main creditor said.
Creditors will lend 280 billion won to Kumho Industrial Co., a construction unit
of the financially embattled conglomerate, the Korea Development Bank (KDB) said.
They will also provide 100 billion won in fresh loan to Kumho Tire Co. and open a
line of credit worth up to $30 million for the tire producer, KDB said.
The decision by creditors came after the family owners of the group agreed Monday
with creditors to put up their entire stake in the group's affiliates as
collateral to ensure its survival.
"Creditors will inject the new funds before the lunar New Year holiday to help
relieve financial difficulties for sub-contractors (of the two companies)," said
an official at one of the creditor banks. The lunar New Year holiday lasts from
Saturday to Monday.
The two affiliates went under debt-rescheduling on December 30 due to cash
shortages triggered by its purchase of No.4 builder Daewoo Engineering &
Construction Co.
pbr@yna.co.kr
(END)