Kumho’s loan request gets negative response

Home > Business > Industry

print dictionary print

Kumho’s loan request gets negative response

Kumho Asiana Group is in the hot seat after both the Korea Development Bank (KDB) and Financial Services Commission (FSC) were negative about a big new loan to help its flagship airline survive a financial crisis.

The KDB, Asiana Airlines’ main creditor, said Thursday that a meeting of the company’s nine creditors Wednesday came to the conclusion that a restructuring plan would not restore trust in the company.

The KDB said the family controlling the group will need to dig into their personal wealth to turn Asiana around.

On Wednesday, Kumho Asiana Group asked creditors for a 500 billion won ($438.8 million) loan and offered a 4.8 percent stake in the group’s de facto holding company, Kumho Buslines, as collateral for the loan. The stake, owned by the wife and daughter of the conglomerate’s former Chairman Park Sam-koo, is estimated to be currently worth 20 billion won.

The FSC dismissed the proposal made by Kumho Asiana.

“We have to find out what it means that it’s asking for three years,” said Financial Services Commission Chairman Choi Jong-ku Thursday.

Kumho Asiana Group said it would not object to creditors selling Asiana Airlines if it isn’t turned around in three years.


BY LEE HO-JEONG [lee.hojeong@joongang.co.kr]

More in Industry

Eastar Jet's pilot union pushes for receivership of airline

ITC agrees to review its decision in Botox dispute

Hyundai Motor and union come to a wage freeze deal

Samsung Biologics signs supply deal with AstraZeneca

Tesla to increase battery cell purchases from suppliers including LG

Log in to Twitter or Facebook account to connect
with the Korea JoongAng Daily
help-image Social comment?
lock icon

To write comments, please log in to one of the accounts.

Standards Board Policy (0/250자)

What’s Popular Now