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Kumho`s Owning Family Asked to Give Up Assets

Posted January. 09, 2010 07:02,   


The Kumho Asiana Group`s controlling family should give up its assets except residences to assume responsibility for the heavily indebted state, the head of the group’s main creditor bank said yesterday.

Min Euoo-sung, president of the Korea Development Bank and chairman of KDB Financial Group, told The Donga-A Ilbo over the phone that the Park family should do this as the main shareholders of the two companies.

“Kumho Asiana must also conduct aggressive restructuring to overcome its crisis,” he added.

“If any of its four affiliates, including Kumho Industrial, fails to conduct restructuring, the management right held by Kumho Petrochemical, the de facto holding company, should be forfeited. Affiliates subject to debt restructuring should also be put under court receivership.”

Min said the bank will carry out restructuring by all means.

On debt restructuring for Kumho Tire and Kumho Industrial, he said, “We will devise the debt workout program within two months and help both companies achieve a turnaround through capital reduction, a debt-for-equity swap, and interest rate cut.”

Min expressed caution over the proposed sale of Korea Express, however, saying, “We’ll make a decision after carefully considering the pros and cons.”

“Among other large conglomerates, the Dongbu Group needs restructuring this year. We also need additional negotiations with GM for the long-term survival of GM Daewoo.”