Deadline Passes As Hyundai Development Corp. Fails To Sign Asiana Acquisition DealJuly 15, 2020
Hyundai Development Corporation HDC Co. had yet to finalize a deal to acquire shares of Asiana Airlines as a July 12 deadline passed, the BusinessKorea website reported. The deal which has received strong support from Korea Development Bank Chairman Lee Dong Gull, as well as Transportation Minister Kim Hyun-Mee, was to be concluded by June 27th. An extension to July 12th had been granted as Russian authorities had yet to complete a regulatory review.
Under the transaction first elaborated in December 2019, the Hyundai Development Corporation was to acquire 30.77 percent of Kumho Industrial Co., a unit of Kumho Asiana simultanously to the issuing of new shares worth $2.2 Billion to six of the airline’s affiliates.
The crippling blow dealt to the airline’s finances by the COVID19 pandemy, however may have convinced HDC to renegotiate some of the acquisition terms. Already alarming debt had, months ago prompted a $1.4 Billion rescue package from two state banks; the Korean Development Bank and Export-Import Bank of Korea. But news of a disappointing bonds issue emerging last week did little to brighten the carrier’s liquidity outlook.
Yet the deal appeared to have garnered significant support, not only from creditors, but also from regulatory bodies in the United States, China, Kazakhstan, Uzbekistan, Turkey and lately Russia.
With the prospects for a quick recovery fading throughout the industry, the fate of Asiana