Creditors agree to debt rescheduling for Kumho Industrial

SEOUL, Jan. 6 (Yonhap) -- Creditor banks of Kumho Industrial Co. agreed Wednesday
to freeze debt repayments by the builder, a unit of South Korea's cash-strapped
Kumho Asiana Group, for three months, the builder's main creditor said.

During the period, the creditors will come up with a plan to put Kumho Industrial
back on track after a due diligence is conducted on the builder, Woori Bank said
in a statement.
Kumho Industrial will be required to carry out a self-rescue plan that includes
the sale of non-core assets and cost-cutting efforts in return for the
three-month debt freeze, the lender said.
The creditors plan to provide fresh loans to Kumho Industrial to help revive the
company as soon as possible, Woori Bank said.
On Dec. 30, Kumho Asiana and its main creditor Korea Development Bank agreed to
reschedule debts of the group's two units -- Kumho Industrial and Kumho Tire Co.
-- following the failed sale of Daewoo Engineering & Construction Co.
Kumho Asiana unveiled a restructuring plan on Tuesday that involves raising 1.3
trillion won (US$1.1 billion) by selling off assets, while cutting costs via a 20
percent reduction in executive positions and wages. Kumho Asiana's debts are
estimated at 15.7 trillion won, according to the financial watchdog.
Shares of Kumho Industrial soar 5.64 percent to 6,370 won on the Seoul bourse
before the bourse operator suspended trading for 30 minutes from 1:27 p.m. The
shares plunged 45 percent during the previous five sessions.
pbr@yna.co.kr
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