S Korean Kumho Asiana Group to sell airline unit if revival plans fail

Visual from Kumho Asiana Plaza website.

Kumho Asiana Group has told its main creditor that it will actively cooperate in selling crown jewel Asiana Airlines Inc 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, after an accounting debacle rekindled concern about the group’s liquidity.

Park also pledged not to return to management at the group.

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.

Reuters

 

 

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Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.