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Restructuring

Kumho Asiana Group eyes sale of affiliate golf course and resort

Sep 21, 2020 (Gmt+09:00)

Kumho Asiana Group, the parent company of cash-strapped Asiana Airlines Inc., plans to put up affiliate Kumho Resort for sale as part of self-rescue measures pledged in return for a bailout from its creditors, according to financial industry sources on Sept. 21.

The sale process will be conducted via public tender. As part of the sale process, Asiana Airlines and its creditors may consider splitting up operations in Kumho Resort, depending on the buyer's inclinations.

Asiana Airlines said that details have yet to be confirmed although various measures are being discussed with creditors.

This will be the first self-rescue measure to be carried out following the botched deal between Asiana Airlines and HDC Hyundai Development Co. earlier this month.

Asiana Airlines' creditors have decided to place the financially troubled carrier under their control after declaring the collapse of the deal and are planning to funnel as much as 2.4 trillion won ($2 billion) from a state fund into Asiana to keep it afloat before seeking another buyer.

Founded in 2006, Kumho Resort operates Asiana Country Club, an exclusive 36-hole facility outside Seoul, alongside four condominiums and three water parks also in Korea and a golf and resort facility in Weihai, China.

Kumho Resort as a whole may reach around a 500 billion won price tag, according to industry sources.

Kumho Resort's most attractive asset, Asiana CC, is likely to fetch some 200 billion won given that Doosan Heavy Industries & Construction Co. sold Club Mow, a 27-hole golf course, for 185 billion won in August.

In 2019, Kumho Resort turned to a deficit, with revenue dropping to 75.7 billion won from 90.7 billion won in 2018.

By Sang-eun Lucia Lee

selee@hankyung.com

Danbee Lee edited this article

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