SK Global Chairman Resigns

SK Group Chairman Son Kil-seung resigned from his positions as chairman and director of SK Global.

His resignation comes before the court ruling over the fraudulent accounting of SK Global and the final deliberation of the Financial Supervisory Service (FSS) on the sanctions against the company.

“Son stepped down as the chairman and as a member of the board of SK Global to give creditors a wider choice in appointing a new chairman and board before the shareholders meeting scheduled for Sept. 9,” SK said.

Creditors of the financially-troubled trading company are expected to hold a meeting Monday to appoint Jung Man-won, president for SK Global`s globalization headquarters as a new member of the board with the rest of members at his disposal.

Changing the title of the company to ‘SK Network’ is under consideration in order to improve the corporate image when it exchanges a Memorandum of Understanding (MOU) with creditors to normalize the management before the shareholders’ meeting.

Meanwhile, the cash buy-out rate (CBO) of overseas creditors of SK Global will be fixed from 46-47 percent of the principal sum.

Offshore creditors will be given 3 percent of BWs (bond with warrant) when 80-90 percent of individual overseas financial institutions agree with the idea based on the 43 percent of CBO rate, according to an agreement with Hana Bank. If 90-95 percent of individual overseas banks agree, they will get 4 more percent of BWs.

“Almost 90 percent of overseas banks agreed. So they will have more than 46 percent of the CBO rate,” said Hana Bank.

Do-Young Kim nirvana1@donga.com