Court Approves Eastar Jet-Seongjeong Investment Contract Signing... Main Contract on 24th

[Image source=Yonhap News]

[Asia Economy Reporter Kim Daehyun] The court has approved Seongjeong as the preferred negotiation partner for the acquisition of Eastar Jet, which is undergoing corporate rehabilitation procedures. The investment contract between the two companies will be signed on the 24th.

On the 22nd, the Seoul Bankruptcy Court Rehabilitation Division 1 (Chief Judge Seo Kyunghwan) approved the investment contract signing with Seongjeong, the final prospective acquirer of Eastar Jet. The court also approved the application from the secondary prospective acquirer, the Kwanglim Consortium.

On the same day, Eastar Jet's administrator CEO Kim Yusang submitted an 'Application for Approval of Investment Contract Signing and Final/Secondary Prospective Acquirers' to the court. Although it usually takes 2 to 4 weeks from selecting the preferred negotiation partner and signing the memorandum of understanding to the final contract signing, the court decided to skip the detailed due diligence and immediately approved the final acquisition investment contract signing.

Seongjeong is known to have had a strong interest in the airline industry, having considered investment in the airline even before Eastar Jet was founded in 2006. Headquartered in Buyeo, Chungcheong Province, Seongjeong is engaged in golf course management, real estate leasing, and real estate development, and expects the airline business to create synergy with its existing operations.