Troubled Kumho Asiana Group has set a drastic restructuring plan that will mean top level job cuts, forced unpaid leaves, and raising $1.13 billion in capital through asset sales.

The cash-strapped parent of Kumho Tire Co. announced the restructuring plan yesterday morning in Seoul.

Meanwhile, creditors met later that day to discuss a possible debt repayment delay for two other Kumho Asiana units – Kumho Petrochemical Co. and Asiana Airlines. The move comes a week after creditors agreed to a debt “work out” program with Kumho Industrial Co. and Kumho Tire Co.

AFP reported that state-run Korea Development Bank, a key creditor, said last week that Kumho Industrial and Kumho Tire would be put under the work out program in order to avoid liquidation.

Kumho Asiana said it intends to cut its executive headcount from 230 to 180 and slash executive salaries by 20 percent. In addition, all office workers are being forced to take a month-long unpaid leave.

There was no specific word as to how the moves will impact Kumho Tire Co. or its direct affiliates. (Tire Review)