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LG Card's former parent, Shinhan Financial agree to debt-to-equity swaps
By Ted A. Knutson
Washington, Jan. 19 - LG Card Co.'s former parent, LG Corp., and Shinhan Financial Group Co. Ltd., a major Korean bank holding company, have agreed to swap debt for equity to help keep the embattled credit card company afloat.
Shinhan said its Shinhan Bank and Chohung Bank affiliates have agreed to swap 11 billon won and 10 billion won of debt, respectively, for ownership stakes in LG Card. The affiliates have also agreed to a 26.3 billion won equity infusion into the consumer lender.
At the same time, LG Corp. said it will swap 48.1 billion won for equity in the one-time subsidiary through a third party. LG Corp. has told the Korean Stock Exchange it will put 500 billion won into LG Card, according to Korea's Yonhap News Agency.
Shinan Financial revealed its moves in a 6-K filing with the Securities and Exchange Commission.
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