KDB Bank has rejected the Kumho Asiana Group's self-rescue plan for Asiana Airlines, saying it is insufficient to restore market confidence.
KDB, the main creditor of Asiana Airlines, said on April 11 that participants in a meeting of creditors of nine Asiana Airlines expressed a negative stance on April 10, saying it is difficult to accept Kumho Group's self-rescue plan.
Regarding Kumho's self-rescue plan, the creditors said, "It is deemed insufficient to regain market confidence as there are no practical measures such as private property contributions or capital increase."
It also pointed out that even if creditors provide 500 billion won requested by Kumho under the self-rescue plan, uncertainties in market procurement could add to the additional financial burden on creditors in the future.
In response, KDB said it plans to deliver the results of such creditor meetings to Kumho and consult with creditors to proceed with future procedures.
Kumho Asiana Group proposed a self-rescue plan the previous day when it asked its main creditor KDB to provide 500 billion won worth of funds to resolve liquidity problems.
Under the plan, if the group fails to achieve the goal after signing an MOU to improve its financial structure for three years after offering Kumho Buslines shares held by the family of the largest shareholder as collateral, it will not raise objections to the sale of Asiana Airlines but cooperate actively.
However, Kumho Buslines shares of Chairman Park Sam-koo and his son Park Se-chang were already offered as collateral to creditors for the long-term borrowing of Kumho Tire in the past. Only 3.08 percent of Kumho Buslines held by Park's wife Lee Kyung-yeol, and 1.71 percent held by her daughter Park Se-jin, will be newly offered as collateral.
