South Korean carrier, Asiana Airlines has given in to creditors’ demands and will sell a third-share of the business currently owned by the ruling Park family.
Parent company Kumho Asiana Group agreed to offload the Park family’s stake in Asiana Airlines to placate creditors who have balked at granting new funds for the debt-laden conglomerate.
The stake sale could generate about 500 billion South Korean won ($440 million). Kumho Asiana group said the sale would ‘help restore market confidence in both the group and Asiana Airlines.’
The carrier posted a 89% fall in operating profit for 2018 and has faced a series of financial challenges. CEO Park Sam-koo, of the ruling Park family, was ousted last month after an accounting fiasco led to shares being suspended briefly and calls for a credit rating downgrading.
The airline then said it was considering cutting loss-making routes and may even sell off aircraft.
Creditors, led by state-run Korea Development Bank had rejected several previous plans to turn around the airline which would not have diluted the influence of the Park family.
In recent times the general public has turned against the so-called ‘chaebol’ family dynasties that run many of South Korea’s largest conglomerates, and investors are now losing patience.
