"KCGI, No Restructuring Means Nonsense? Are They Saying They Will Do It Like JAL?"
[Asia Economy Reporter Yoo Je-hoon] Hanjin Group stated on the 24th regarding the private equity fund (PEF) KCGI's injunction request to prohibit new share issuance, "If the acquisition of Asiana Airlines fails due to the injunction request result, KCGI will be fully responsible for the damage to the aviation industry and job issues caused by it."
Hanjin Group released a press statement on the same day, saying, "If the court grants the injunction request, the precondition for closing the deal will not be met, resulting in the failure of the acquisition. In particular, if Asiana Airlines does not secure capital expansion by the end of the year, it will face designation as a management item and even grounds for license cancellation, which is a serious situation."
Regarding KCGI's claim that there are several options besides third-party allotment capital increase, Hanjin Group rebutted, "This is the only way to satisfy the holding company shareholding maintenance condition under the Fair Trade Act while allowing the Korea Development Bank to properly check and monitor the integration process."
On the allegation of a side agreement, they said, "It is a clear falsehood and constitutes defamation by spreading false information," emphasizing, "KCGI should clearly disclose the grounds for claiming management rights guarantee and side agreements."
In response to KCGI's criticism that the Korea Development Bank does not intervene in the management of Jin Air and non-aviation affiliates, Hanjin Group explained, "In the case of Jin Air, checks and balances are possible based on prior consultation and consent rights," adding, "Also, the Korea Development Bank's acquisition of Hanjin Kal shares to participate in Korean Air's acquisition of Asiana Airlines aims to strengthen the competitiveness of the Korean aviation industry for survival, and there is no reason to interfere in the business of non-aviation affiliates."
Furthermore, regarding KCGI's criticism that "it is contradictory to say there is no restructuring while insisting that the integration of a failing airline is urgent," Hanjin Group questioned, "Does this mean that employee restructuring must necessarily occur after integration?" They pointed out, "KCGI has previously cited Japan Airlines (JAL) rehabilitation as a model case, but the JAL restructuring process involved debt forgiveness worth trillions of won, public fund injection, and mass layoffs of about 16,000 employees. KCGI should answer whether such pain-sharing like JAL is necessary."
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