Creditors, LG to compromise on rescue for LG Card: financial watchdog

0 Comments | AFP, December, 2004

SEOUL (AFP) — South Korea's top financial watchdog says creditors and the LG Group would eventually compromise over how to rescue LG Card in order to avoid the demise of the country's largest card issuer.

Shares of LG Card were up 5.4 percent at 15,500 won, with investors betting the company would be rescued, if only at the last minute.

Korea Development Bank and other creditors have given the LG Group until late Wednesday to join a new 1.1-billion-dollar rescue package to rescue its former card unit.

If it does not, they have threatened to liquidate LG Card and hit the LG Group by cutting credit lines to the country's second largest conglomerate.

"They (creditors and LG Group) appear to be at odds with each other but I think they are on the way to a...