Jeju Air has abandoned its acquisition of cash-strapped Eastar Jet due mainly to growing uncertainties in the aviation industry caused by the prolonged COVID-19 pandemic, reported The Korea Times.
Following Jeju Air’s decision to back out of its share purchase agreement signed with Eastar Holdings, NH Investment & Securities analyst Jeong Yeon-seung said, “Eastar Jet, which has fallen into a state of capital impairment, is highly likely to go bankrupt.”
A Jeju Air official said it was regrettable that the firm’s acquisition plan has failed to come to fruition despite the government’s intention to offer support and its efforts to mediate.
“We made the decision because the uncertainty that Jeju Air needs to bear is too much, and this could hurt our shareholders and other interested parties,” the official said.
Full Content: Korea Times
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