Jindo's Creditors Pull the Plug

Creditors of Jindo Co., Ltd. have halted the workout program for the debt-ridden firm with the unlikely core businesses of shipping containers and fur coats. The company, which had been involved in sell-off talks, is expected to seek court protection.

The vote by creditors Monday to end Jindo's restructuring program means that talks aimed at selling off the company will probably break down.

The creditors also voted on plans to divide Jindo into separate businesses before selling it and to extend interest due dates. Both ideas were rejected, though, when they failed to receive the approval of at least 75 percent of the creditors.

If Jindo files for bankruptcy, the impact on the financial sector would be large; the firm's debt totals 1.3 trillion won ($1 billion).