Creditor Banks" Plan for Kia"s Debt is Wavering

Creditor Banks' plans are wavering for Kia's debt consolidation and write offs. The banks are not finalizing their debt restructuring plan, as Hyundai Group is requiring too much of the debt to be written off. Hyundai, which recently emerged as the successful bidder for Kia and its subsidiary of Asia Motors, is now demanding 7.3 trillion won in debt reduction.
If creditor banks consent to Hyundai's requirements, the banks who hold the warranted debts will be repayed just 29.6% of the principal while banks without warrant receive only 16.2%.
In addition, Hyundai is now demanding an additional loan of 3 trillion won. Creditor banks are now reluctant to Hyundai's terms.
Accordingly, creditor banks are planning to postpone meetings for Kia's debt allocation until November.
Industry analysts, however, are saying, ' In the current situation, it is not possible to balance the interests of both creditor banks and Hyundai. Therefore, it is necessary for the government to devise a good supplemental plan.