Creditors to sell Kumho Industrial to Kumho chairman

Creditors of South Korean construction firm Kumho Industrial Co. have decided to sell their stake in the company to the chief of Kumho Asiana Group after a recent sales bid fell through due to differences over a price, the lead manager for the sale said Monday.

Some 98 percent of the creditors who hold a combined 57.54 percent stake in Kumho Industrial have voted for the plan to sell their holdings to chairman Park Sam-goo and his son, Se-chang, according to statement by Korea Development Bank, which manages the deal. 

The latest decision comes after efforts to sell the stake have mostly stuttered as the 52 creditors rejected a sole bid by Hoban Construction Co. in late April, citing a price mismatch. The mid-sized builder submitted a bid of 600.7 billion won ($553 million), far short of the anticipated price of up to 1 trillion won.

Chairman Park has been seeking to buy the group's parent firm to piece back together the affiliates that were torn apart in a liquidity crisis.

Kumho Asiana Group controls Asiana Airlines Inc., the country's second-largest air carrier.

Under the plan, accounting firms Samil PricewaterhouseCoopers and Deloitte Anjin will work to evaluate the builder in June, with the sell-off scheduled to take place in the ensuing two-month period, according to the state-run lender.

If Park refuses to accept the price offered by the creditors, they can proceed with a private deal involving a third party within six months of the refusal.

Kumho Industrial had been struggling under mounting debt amid adverse property market conditions. It was lifted from a five-year debt workout program in December. (Yonhap)