South Korea's finance minister says the creditors of Asiana Airlines plan to inject around one.four billion U.S. dollars to ease its parent company's liquidity crisis.
Attending a meeting of various economy-related ministers on Tuesday, Hong Nam-ki said creditors led by the state-funded Korea Development Bank will buy around 438-million U.S. dollars worth of perpetual bonds and set a credit limit of 700-million dollars.
Credit limit means the maximum amount of credit that lenders will extend to a debtor for a particular line of credit.
This all comes after creditors accepted Kumho Asiana Group's self-rescue plan earlier this monthwhich included selling its flagship Asiana Airlines.
Hong added the firm will strive to improve its business conditionsand push for merger and acquisitions by the end of the year.
KDB, which is the main creditor of major corporations, announced on the same day an additional bridge loan worth around 114-million U.S. dollars to be provided to Kumho Buslines, the group's de facto holding company.
But the bank said Asiana Airline's M&A has to happen first.
Besides Korea's second-biggest airline, another big issue discussed in the meeting was updating the public on the government's so-called 'crisis zones' for industry and employment.
These zones refer to areas that rely on certain industries such as shipbuildingwhere many people can face lay-offs if that specific field struggles.
The government has been providing financial and job support to the regions.
Hong said the government will extend the appointed period until May 2021 in five regions, including Geoje city in Gyeongsangnam-do Province.
Ministers also discussed ways to revitalize South Korea's shipbuilding industry.
Specific measures include increasing the number of professional personnel in the fieldand providing more support in terms of refund guarantees.
Ko Roon-hee, Arirang News.