LG H&H's Subsidiary Converts $205.5 Million Debt to Equity
LG H&H's (KRX:051900) indirect subsidiary, The Avon Co., will convert $205.5 million in loans from LG H&H USA, into equity capital through a debt-to-equity swap, according to a bourse filing on Monday.The capital increase, approved by The Avon Co.'s board on Aug. 23, will see the subsidiary reduce its debt burden via a rights offering to its sole shareholder.The transaction amount, equivalent to approximately 286.3 billion won based on the Aug. 21 exchange rate, is subject to change depending on final settlement details and foreign exchange rates.This move follows LG H&H USA's decision disclosed earlier on Aug. 24 to sell its entire stake in The Avon Co. to Stratford Worldwide, as part of a broader strategic restructuring of its North American portfolio.
