ID :
98231
Tue, 01/05/2010 - 09:18
Auther :
Shortlink :
https://www.oananews.org//node/98231
The shortlink copeid
Kumho Asiana to carry out drastic restructuring
By Nam Kwang-sik
SEOUL, Jan. 5 (Yonhap) -- South Korea's financially troubled Kumho Asiana Group said Tuesday that it will cut 20 percent of its executives and raise 1.3 trillion won (US$1.1 billion) by selling its units' own assets as part of a restructuring plan.
On Dec. 30, Kumho Asiana agreed with its main creditor Korea Development Bank
(KDB) to put the group's two units -- Kumho Industrial Co. and Kumho Tire Co. --
under a debt rescheduling program to help the group ease cash shortages sparked
by the delayed sale of its unit Daewoo Engineering & Construction Co.
KDB, however, allowed Korea Kumho Petrochemical Co. and Asiana Airlines Inc. more
time for debt repayment in return for their pledges to restructure themselves.
The group also plans to cut 20 percent of its executives' wages and offer a
month's unpaid leave to all the office employees, it said in a statement.
The downsizing will reduce the number of the group's executives to 180 from 230,
Kumho Asiana said.
In an effort to secure cash, the group will sell the assets of its four units --
Kumho Industrial, Kumho Tire, Korea Kumho Petrochemical and Asiana Airlines.
Kumho Industrial will raise an estimated 477.6 billion won by disposing of its
properties in Vietnam and Hong Kong, while Kumho Tire will secure 150 billion won
through the sale of its 49 percent stake in Kumho Tire (H.K.) Co., its Hong Kong
unit.
Korea Kumho Petrochemical will raise 265.3 billion won by selling its treasury
shares, with Asiana Airlines planing to sell its software developer Asiana IDT
Inc., and its stake in Kumho Investment Bank Co., the financial unit of the
group. Kumho Asiana tried to sell Asiana IDT in July 2009, but it failed.
The group said it will make strenuous efforts to cut its costs until the company
gets back on its feet.
Kumho Asiana has decided to sell its three units -- Kumho Life Insurance Co.,
Kumho Rent-a-Car Co. and Daewoo Engineering & Construction Co. -- to ride out its
severe cash shortages.
Kumho Asiana has faced a credit crunch since purchasing a 72.1 percent stake in
Daewoo Engineering in 2006 for 6.24 trillion by borrowing 3.5 trillion won.
The group promised investors that it would buy back their shares if the share
price of Daewoo Engineering fell below 31,500 won, in return for the 3.5 trillion
won in financial support.
ksnam@yna.co.kr
(END)
SEOUL, Jan. 5 (Yonhap) -- South Korea's financially troubled Kumho Asiana Group said Tuesday that it will cut 20 percent of its executives and raise 1.3 trillion won (US$1.1 billion) by selling its units' own assets as part of a restructuring plan.
On Dec. 30, Kumho Asiana agreed with its main creditor Korea Development Bank
(KDB) to put the group's two units -- Kumho Industrial Co. and Kumho Tire Co. --
under a debt rescheduling program to help the group ease cash shortages sparked
by the delayed sale of its unit Daewoo Engineering & Construction Co.
KDB, however, allowed Korea Kumho Petrochemical Co. and Asiana Airlines Inc. more
time for debt repayment in return for their pledges to restructure themselves.
The group also plans to cut 20 percent of its executives' wages and offer a
month's unpaid leave to all the office employees, it said in a statement.
The downsizing will reduce the number of the group's executives to 180 from 230,
Kumho Asiana said.
In an effort to secure cash, the group will sell the assets of its four units --
Kumho Industrial, Kumho Tire, Korea Kumho Petrochemical and Asiana Airlines.
Kumho Industrial will raise an estimated 477.6 billion won by disposing of its
properties in Vietnam and Hong Kong, while Kumho Tire will secure 150 billion won
through the sale of its 49 percent stake in Kumho Tire (H.K.) Co., its Hong Kong
unit.
Korea Kumho Petrochemical will raise 265.3 billion won by selling its treasury
shares, with Asiana Airlines planing to sell its software developer Asiana IDT
Inc., and its stake in Kumho Investment Bank Co., the financial unit of the
group. Kumho Asiana tried to sell Asiana IDT in July 2009, but it failed.
The group said it will make strenuous efforts to cut its costs until the company
gets back on its feet.
Kumho Asiana has decided to sell its three units -- Kumho Life Insurance Co.,
Kumho Rent-a-Car Co. and Daewoo Engineering & Construction Co. -- to ride out its
severe cash shortages.
Kumho Asiana has faced a credit crunch since purchasing a 72.1 percent stake in
Daewoo Engineering in 2006 for 6.24 trillion by borrowing 3.5 trillion won.
The group promised investors that it would buy back their shares if the share
price of Daewoo Engineering fell below 31,500 won, in return for the 3.5 trillion
won in financial support.
ksnam@yna.co.kr
(END)
