Kumho Asiana Group co shares rally on restructuring plan
11/04/2019 03:24
(Updates few terms and expressions; adds a bullet)
** Shares of Kumho Asiana Group units surge after the
conglomerate pledges to sell its airline unit Asiana Airlines
020560.KS , if it fails to implement restructuring plan
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** To resolve its liquidity problem, the group seeks
financial support worth 500 billion won ($439.29 million) from
Korea Development Bank
** The group also promises to sell assets owned by units,
including Asiana Airlines, to repay loans
** Asiana Airlines gains as much as 18.5 pct, while its
affiliates Air Busan 298690.KS and Asiana IDT 267850.KS soar
29.9 pct and 26 pct, respectively
** Asiana's biggest shareholder, Kumho Industrial
002990.KS , jumps as much as 13 pct
** Considering the group's determination for normalisation,
including plans to sell Asiana, creditors are expected to enter
negotiation with more flexibility, Choi Go-woon, an analyst from
Korea Investment & Securities, says in a report
** However, it will take a long time to recover investor
sentiment as well as trust of creditors - the report
** The broader KOSPI market .KS11 was trading flat
($1 = 1,138.2000 won)
((hayoung.choi.thomsonreuters.com@reuters.net))