[an error occurred while processing this directive]
BBC News
watch One-Minute World News
Last Updated: Tuesday, 10 June, 2003, 05:27 GMT 06:27 UK
Creditors' lifeline for SK Global
An arrival at SK Global's headquarters
Creditors of South Korea's SK Global have agreed to a deal that should keep the troubled firm afloat.

They will swap up to 2.9 trillion won ($2.4bn; 1.5bn) in debt for new shares in SK Global - the trading arm of South Korea's third largest conglomerate SK Group.

This amounts to nearly half the company's debt.

The firm has been on the verge of bankruptcy since a $1.2bn accounting fraud was uncovered in March.

Drive for reform

"SK Global still has a long way to go before it gives the market a clear sign of survival," said Kim Jeong-pyo, an analyst with Kyobo Securities.

"But the latest creditors' move is showing the worst seems to be over."

The debt swap was agreed by a creditor steering committee and will be presented to a general creditors' meeting next week.

SK Global's fate is seen as a test of President Roh Moo-hyun's drive to reform corporate accountability at the family-run groups, or chaebols, that control most of the economy.




SEE ALSO:
S Korea to probe chaebols
03 Jun 03  |  Business
SK holds out bailout hope
29 May 03  |  Business
Trade suspended in Korean giant
31 Mar 03  |  Business


RELATED INTERNET LINKS:
The BBC is not responsible for the content of external internet sites


PRODUCTS AND SERVICES

News Front Page | Africa | Americas | Asia-Pacific | Europe | Middle East | South Asia
UK | Business | Entertainment | Science/Nature | Technology | Health
Have Your Say | In Pictures | Week at a Glance | Country Profiles | In Depth | Programmes
Americas Africa Europe Middle East South Asia Asia Pacific