Cash strapped Kumho Asiana Group and its creditors have agreed to a debt restructuring program.
Under the program, Kumho Asiana will sell a controlling stake in its Daewoo Engineering & Construction Co. to a private equity fund led by Korea Development Bank for $2.5 billion.
In addition, it will also sell off its auto rental business for some $260 million, and its insurance unit for an undisclosed sum.
Furthermore, the debt of its Kumho Tire and Kumho Industrial operations will be restructured.
Kumho Tire announced earlier this week that paychecks for some 5,500 employees for the month of December were being withheld until January due to cash constraints.
