LG Card Facing Possible Liquidation Over Debts

Published on:
12 September 2006 at 10:18 a.m. ET

Written by: Unknown Author –

http://www.insidearm.com/news/00008963-lg-card-facing-possible-liquidation-over-/

LG Group companies for the first time indicated they may be willing to share in the cost of a second bailout for the South Korean credit-card company, creditor Korea Development Bank said.

The indication came two days after the former owners of LG Card refused to join an additional 1.2 trillion won ($1.1 billion) bailout plan. Nine Creditors said they may seek to liquidate LG Card unless LG Group companies provide additional financial assistance.

LG Electronics Inc. and other group companies, which were major shareholders before creditors bailed out the card issuer in January, offered 1.175 trillion won in short-term loans and bonds as part of an earlier package. Creditors now want the group companies to provide additional aid by converting about 770 billion won of debt into equity by the end of this year.

For this complete story, please visit LG Card Facing Possible Liquidation Over Debts.

LG Card Facing Possible Liquidation Over Debts

Unknown Author

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