SEOUL, Jan. 11 (Xinhua) -- South Korea's Kumho Industrial, which was about to be delisted from the local bourse, is likely to maintain its listing on the index as creditors sought to devise alternative measures such as a capital reduction and a debt-equity swap, local media reported Monday.

    "Kumho Industrial is facing a threat of delisting due to possible capital erosion by losses from a put-back option of Daewoo Engineering and Construction, according to its business report for 2009," an official of a creditor was quoted as saying by South Korea's Maeil Business Newspaper.

    The company, however, may be safe if a workout plan such as a capital reduction and a debt-equity swap is devised before the end of February this year when the company's business report is scheduled to be released, the media report said.

    South Korea's securities market listing regulations state that even if a listed company that faces delisting due to capital erosion, a detailed measure to resolve the problem may save it from being deleted from South Korea's key index.

    On Dec. 30, South Korean conglomerate Kumho Asiana's main creditor KDB said that it agreed to put two of Kumho Asiana's units, Kumho Industrial and Kumho Tire Co., under a debt rescheduling program as the group failed to sell its affiliate Daewoo Engineering & Construction Co.    

Special Report:  Global Financial Crisis