LG Group officially rejects creditor demand to help LG Card

0 Comments | AFP, December, 2004

SEOUL (AFP) — The LG Group officially turned down a request by creditors of LG Card to provide further help in rescuing the country's largest credit card issuer, the group said.

The rejection added to uncertainties about the fate of the troubled company, sending LG Card shares down 8.7 percent to close at 14,700 won.

In an official letter to main creditor Korea Development Bank, LG Group said Tuesday that none of its units, including LG Electronics and LG Chem, were willing to provide additional help for LG Card.

It recalled its earlier promise to its investors that there would be no further aid for LG Card in addition to the assistance given to the ailing card issuer early this year.

Korea Development Bank and other creditors in January rescued LG...