Creditor banks of Kumho Asiana Group said Tuesday they will offer $326 million (380 billion won) in fresh loans to the group’s two units under a debt rescheduling scheme.

Creditors will lend 280 billion won to Kumho Industrial Co. and 100 billion won to Kumho Tire Co., in addition to opening a line of credit worth up to $30 million for the tire producer, the Korea Development Bank said.

The decision by creditors came after the family owners of the group agreed Monday with creditors to put up their entire stake in the group's affiliates as collateral to ensure its survival.

“Creditors will inject the new funds before the lunar New Year holiday to help relieve financial difficulties for sub-contractors (of the two companies),” said an official at one of the creditor banks. The lunar New Year holiday lasts from Saturday to Monday.

The two affiliates went under debt-rescheduling on Dec. 30 due to cash shortages triggered by its purchase of Daewoo Engineering & Construction Co. (Tire Review)