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South Korea: FTC clears debt-to-equity bailout for construction firm

By  |  September 17, 2013

South Korea’s antitrust regulators paved the way for an accelerated restructuring plan for the struggling construction firm Kumjo Industrial Co., a move involving the nation’s main creditor bank Korea Development Bank and other lenders in a debt-to-equity swap.

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    The aid will convert $72.8 billion, currently held by the company’s affiliate Asiana Airlines, into equity, say reports.

    Following a review, the Fair Trade Commission found the plan was not in violation of national cross-shareholding laws.

    Kumho owns 30 percent of Asiana Airlines, say reports. Once the debt-to-equity deal is complete, Asiana will own a 13 percent stake in the construction firm.

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