Kumho Asiana seeks to sell unit's express bus division

SEOUL, June 21 (Yonhap) -- South Korea's Kumho Asiana Group said Tuesday that it is in talks with its creditors to spin off and sell the express bus division of Kumho Industrial Co. to improve its financial structure.
"As part of efforts to improve our financial health, we are in talks with our creditors to sell the division," said an official at Kumho Asiana Group. "However, details of the sale have yet to be determined."
Kumho Industrial, the construction arm of Kumho Asiana Group, has two business divisions -- construction and the express bus business.
In April 2010, Kumho Industrial signed a deal with the creditors to spin off and sell its express bus division by 2013 to get it back on its feet. The express bus division posted 52.6 billion won (US$48.7 million) in operating profit last year.
Kumho Asiana's two subsidiaries -- Kumho Tire Co. and Kumho Industrial -- have been put under a debt restructuring program since early 2010 due to a severe cash crunch sparked by the group's purchase of major local builder Daewoo Engineering & Construction Co. in 2006.
ksnam@yna.co.kr