Creditors of South Korean full-service carrier Asiana Airlines Inc. are working on a capital reduction scheme to come to a conclusion within a month as otherwise the stock could be blacklisted for delisting.

According to sources on Tuesday, creditors led by state lender Korea Development Bank (KDB) are reviewing the timing and the way of capital reduction for Asiana Airlines to keep the stock intact for trading.

EY Hanyoung Korea and Bain & Company are involved in the capital scheme.

Capital reduction is essential to keep the airliner afloat, at least until air industry normalizes from pandemic crisis.

As of the end of June, Asiana Airlines’ liabilities exceed working capital by 56 percent. If the ratio remains above 50 percent until the end of the year, it will be placed under the watch list by the country’s stock operator. A stock is shunned if it goes on the watch list. If erosion rate stays above 50 percent for two straight years, it can be delisted.

Experts have expected the creditors would seek for share cancellation in accordance with the holding ratio after the sale of Asiana Airlines flopped. But the burden could weigh heavily on cash-strapped parent Kumho Industrial.

The group chairman Park Sam-koo stepped down in April last year to take responsibility for the accounting incident of the airliner, amid the group’s continued liquidity crunch.

Asiana Airlines shares fell 1.46 percent to close Wednesday at 3,700 won ($3.27) in Seoul.

By Song Gwang-sup and Lee Ha-yeon

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