[Asia Economy Reporter Kangwook Cho] The creditors of Asiana Airlines, including the Korea Development Bank, have sent a final ultimatum to HDC Hyundai Development Company (HDC Hyundai) to express their intention to acquire the airline. The deadline is set for the 27th of this month.
According to financial sources on the 5th, the creditors recently sent a certified letter to HDC Hyundai demanding a clear statement of intent regarding the acquisition of Asiana Airlines by the 27th. The purpose is to allow contract extension only if the acquisition intention is confirmed by the deadline.
Previously, the HDC Hyundai-Mirae Asset Daewoo consortium agreed on December 27 last year to purchase 30.77% of Asiana Airlines shares held by Kumho Industrial for a total of 2.5 trillion won, promising to complete the transaction by the 27th, six months later. This agreement included a condition allowing for an extension considering possible delays in overseas merger approval reviews.
However, the creditors judged that HDC Hyundai’s unconditional request for an extension without expressing its acquisition intention would only increase uncertainty. Although the merger review conclusion from Russia among the six overseas countries has not yet been reached, the creditors expect Russia to approve it soon.
In the financial sector, the fact that the creditors sent a certified letter rather than a verbal notice is seen as a measure to prepare for a possible deal collapse. While a certified letter itself does not have legally binding enforcement power, it can serve as evidence that the creditors made efforts to urge the continuation of the deal in preparation for future lawsuits.
A financial official said, "As far as I know, HDC Hyundai has not yet given a special response, but since the 27th is set as the deadline, a conclusion could be reached within this month," adding, "However, the deal will not necessarily fall through just because the 27th passes."
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