S.Korean creditors to provide $1.4 bln support to Asiana Airlines (updated)

Kumho Engineering & Construction

23/04/2019 24:51

* Creditors offer to buy 500 bln won of perpetual bonds -
finmin
    * Also set a credit limit of 800 bln won, among others -
finmin

 (Changes attribution, adds KDB comments, background)
    SEOUL, April 23 (Reuters) - South Korean creditors plan to
provide 1.6 trillion won ($1.4 billion) of financial support to
debt-laden Asiana Airlines  020560.KS  to address the carrier's
liquidity problems, the country's finance minister said on
Tuesday.
    Asiana Airlines' top shareholder said earlier this month
that it would sell its entire stake in the carrier, bowing to
pressure from creditors who had rejected Asiana's earlier
request for support of 500 billion won.
    Creditors now offered to buy perpetual bonds worth 500
billion won and set a credit limit of 800 billion won, among
others, Finance Minister Hong Nam-ki said.
    Speaking at a meeting, he also said creditors were targeting
the sale of Asiana Airlines, South Korea's second-biggest
airline after Korean Air Lines  003490.KS , within this year.
    State-funded Korea Development Bank, the lead creditor for
Asiana Airlines, declined to comment. 
    ($1 = 1,140.4500 won)

 (Reporting by Hyunjoo Jin and Cynthia Kim
Editing by Jacqueline Wong)
 ((hyunjoo.jin@thomsonreuters.com; 82-2-3704-5685; Reuters
Messaging: hyunjoo.jin.thomsonreuters.com@reuters.net))