Key creditors issue liquidation ultimatum over South Korea's LG Card

0 Comments | AFP, December, 2004

SEOUL (AFP) — Key creditors of South Korea's ailing LG Card issued an ultimatum that LG Group should help bail out its former card unit by Wednesday or otherwise it will be put into liquidation.

The final warning came as heads of four main creditors met to discuss the fate of the country's largest card issuer and as its former parent company refuses to join a new 1.1-billion-dollar rescue package.

The creditors also threatened to impose sanctions on LG Group if LG Card were to collapse.

"We agreed that creditors will not provide aid to LG Card without the participation of LG Group," the creditors said in a joint statement after Korea Development Bank (KDB) and three other main lenders met.

"If LG Group does not reply by tomorrow, LG Card will be...

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