S.Korea's Kumho Asiana says will agree to sell airline unit if revamp fails (updated)

Kumho Engineering & Construction

10/04/2019 08:41

(Adds accounting debacle at airline unit)
    SEOUL, April 10 (Reuters) - Kumho Asiana Group has told its
main creditor that it will actively cooperate in selling crown
jewel Asiana Airlines Inc  020560.KS  should the South Korean
conglomerate fail to implement its restructuring plan over the
next three years.
    The pledge was made in a revamp plan that Kumho Asiana
submitted to creditor Korea Development Bank (KDB), and which
included a request for financial support of 500 billion won
($439.11 million), KDB said in a statement on Wednesday.
    Kumho Asiana also promised to sell assets owned by units
including Asiana Airlines to repay loans, KDB said.
    Last month, group Chairman Park Sam-koo resigned as chief
executive of both Asiana Airlines and its biggest shareholder,
Kumho Industrial Co Ltd  002990.KS , after an accounting debacle
rekindled concern about the group's liquidity.  urn:newsml:reuters.com:*:nL3N21F1DH
    Park also pledged not to return to management at the group.
 urn:newsml:reuters.com:*:nL3N21J1QH
    Asiana Airlines revised its 2018 accounts and disclosed a
steeper annual loss to win approval from an auditor which had
previously declined to sign off on them. The auditor's initial
rejection triggered warnings of credit-rating downgrades.
    KDB said it will host meetings with other creditors to
review Kumho Asiana's plan.
    ($1 = 1,138.6600 won)

    <^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^
Asiana Airlines CEO Park quits in aftermath of accounting fiasco
      urn:newsml:reuters.com:*:nL3N21F1DH
S.Korea's Asiana to cut unprofitable routes, fleet size in
revamp bid      urn:newsml:reuters.com:*:nL3N21J1QH
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 (Reporting by Heekyong Yang and Hyunjoo Jin; Editing by Kim
Coghill and Christopher Cushing)
 ((Heekyong.Yang@thomsonreuters.com; +82 2 3704 5647; Reuters
Messaging: heekyong.yang.thomsonreuters.com@reuters.net))