Zenith Electronics Corp’s Korean parent LG Electronics Inc is reported to be looking at ways to restructure its ailing US consumer electronics maker, including selling-off its assets. In the Korea Herald, LG denied a news report that Zenith is about to seek protection from creditors under Chapter 11 of US bankruptcy laws. LG owns 54.5%% of Zenith, which has recorded little profit in the last 10 years. In its first quarter it lost $37.8m on sales of $220.7m. The paper says LG has loaned Zenith $45m to tide it over the next couple of months. Zenith is said to need $225m to keep it afloat for the rest of the year – a sum LG can hardly afford given its $200m 1997 loss.
