Creditor Banks for Kia Consider Writing Off Portion of Debts
Creditor banks for Kia Motors Co and its subsidiary, Asia Motors, are considering writing off Kia's by 2.6~2.8 trillion won, as much 22~24% as its debt principal.A source at Kia said, 'Kia's liabilities are 5.1 trillion won more than its assets. Therefore, it is necessary to write off its debts by at least more than 3 trillion won so to normalize its management. Creditor banks will decide their final plans for writing off Kia's debts by September 11.'
Samsung Motor Co, a bidder in the first round of bidding for Kia, had asked for a write off of 2.7 trillion won in its first bid. Kia's total debts are 11.85 billion dollars.
with the Korea JoongAng Daily
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