South Korea’s Hyundai Development announced that it wants new terms for its acquisition of Asiana Airlines after the carrier’s already hefty debt burden increased by some US$3.8 billion.
It also called on Asiana’s state-funded creditors to provide support to the long-troubled airline, which must now also contend with the coronavirus pandemic’s crippling impact on travel demand.
Hyundai Development and brokerage Mirae Asset Daewoo agreed in December to purchase control of South Korea’s No. 2 airline for about 2.5 trillion won (US$2.1 billion).
Asiana has recognised an additional 2.8 trillion won of debt as of end-2019 and borrowed another 1.7 trillion won, Hyundai Development stated.
That unexpected increase, the airline’s failure to discuss the situation before incurring more debt, and its support of unsound affiliates mean a renegotiation was warranted, the developer added.
Asiana declined to comment. Korea Development Bank, its lead creditor, did not have immediate comment.
Full Content: Reuters
Want more news? Subscribe to CPI’s free daily newsletter for more headlines and updates on antitrust developments around the world.
