April 26, 2024

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Cash-strapped Kumho Asiana Group is expected to submit a set of fresh self-rescue measures soon, including selling off its flagship unit, in a desperate move to get additional financial help from its creditors, industry sources said on April 15.

Kumho Asiana and its nine creditors, led by the state-run Korea Development Bank, are in negotiations to fine tune the self-rescue measures to address the airline-to-petrochemical conglomerate’s worsening financial status and eventually help it back on track, they said.

“The group is expected to come up with additional self-help plans that include the sale of Asiana Airlines early this week,” a person with direct knowledge of the matter said.

Last week, Kumho Asiana asked the KDB to provide an additional 500 billion won ($440 million) in financial assistance and pledged to sell off Asiana Airlines if it fails to meet creditors’ demands in three years.

By Ram Garikipati and newswires (ram@heraldcorp.com)