S.Korea's Asiana Airline creditors reject group restructuring plan (updated)
11/04/2019 07:39
(Adds KDB and Asiana Airline statements, group share prices)
SEOUL, April 11 (Reuters) - Creditors of Asiana Airlines Inc
020560.KS on Thursday spurned a restructuring plan proposed by
parent Kumho Asiana Group, saying it was not sufficient to
restore market trust in the indebted South Korean carrier.
Kumho Asiana Group's plan, submitted on Tuesday, related to
the restructuring of the entire conglomerate and was aimed at
stabilising crown jewel Asiana Airlines. It included possible
asset sales in return for financial support from creditors of
500 billion won ($439.1 million). urn:newsml:reuters.com:*:nL3N21S1Q9
Asiana Airline's main creditor, Korea Development Bank
(KDB), said the plan lacked practical measures such as a new
share issue and sale of personal assets by members of the
group's controlling family.
"Creditors expressed a pessimistic view of Kumho Asiana's
revamp plan, raising concerns about more financial support
needed for the troubled conglomerate," KDB said in a statement.
"We will submit a new restructuring plan to our creditors
and we will closely cooperate with them," a spokesman at Kumho
Asiana Group told Reuters.
The rejected plan included selling Asiana Airlines should
Kumho Asiana fail to implement the plan over the next three
years.
Group shares rallied on Thursday on hopes that creditors
would provide funding in return for a revised plan.
Asiana Airlines saw its shares surge nearly 12.3 percent by
0542 GMT, while affiliates Air Busan Co Ltd 298690.KS and
Asiana IDT Inc 267850.KS jumped 29.9 percent and 29.3 percent,
respectively.
The airline's biggest shareholder, Kumho Industrial Co Ltd
002990.KS , gained 5.3 percent.
($1 = 1,138.6000 won)
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S.Korea's Kumho Asiana says will agree to sell airline unit if
revamp fails urn:newsml:reuters.com:*:nL3N21S1Q9
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(Reporting by Heekyong Yang; Editing by Stephen Coates and
Christopher Cushing)
((Heekyong.Yang@thomsonreuters.com; +82 2 3704 5647; Reuters
Messaging: heekyong.yang.thomsonreuters.com@reuters.net))