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KDB chief says Asiana sale will likely take six months

Apr 17,2019
Korea Development Bank (KDB) Chief Lee Dong-gull said the sale of Asiana Airlines is expected take about six months, during a meeting with reporters Tuesday.

The state-run bank is the main creditor of the cash-strapped Kumho Asiana Group.

Lee also added that creditors will come up with a decision on financial support plans for Asiana Airlines before April 25.

While Lee declined to comment on the amount of financial support the creditors are considering, he said creditors will funnel “enough cash to stabilize management at Asiana so the company can earn back market trust.”

The announcement comes a day after Kumho Asiana Group submitted a revised turnaround plan to its creditor banks that includes selling the group’s affiliate Asiana Airlines in return for 500 billion won ($440.2 million) of support.

According to the revised plan, the group asked that Asiana Airlines be sold along with its two low-cost subsidiaries, Air Busan and Air Seoul.

Lee said that while selling them altogether would be “desirable,” they can be sold separately if needed.

Meanwhile, former Kumho Asiana Group Chairman Park Sam-koo left notes to employees Tuesday apologizing and saying he is heartbroken to have to sell Asiana Airlines.

By Kim Jee-hee