Court Approves Rehabilitation Plan for Small Airline Hi Air

The court approved the rehabilitation plan of Hi Air Co., Ltd., the only small aircraft transportation company in Korea.

On the 20th, the Seoul Rehabilitation Court, Rehabilitation Division 17 (Chief Judge Yang Min-ho) held a creditors' meeting to review and approve Hi Air's rehabilitation plan and announced that the final rehabilitation plan met the approval requirements and was authorized.

Hi Air, established in December 2017, is known as the only small aircraft transportation company in Korea operating five domestic and one international route. Hi Air began commercial operations in January 2020 but suspended flights from September 2023 due to liquidity deterioration caused by financial difficulties amid the COVID-19 pandemic. In the same month, it filed for rehabilitation proceedings at the Seoul Rehabilitation Court, which were initiated.

Prior to approval, Hi Air pursued a merger and acquisition (M&A) process and selected the Sangsangin Securities consortium as the preferred bidder in April last year. In May, it signed an M&A investment contract with the consortium's representative, Imagine Corporate Finance SPC, for an acquisition price of 16.9 billion KRW. Subsequently, Hi Air submitted the final rehabilitation plan on the 18th after consultations with Imagine Corporate Finance SPC, the acquiring entity.

A representative of the rehabilitation court stated, "With the approval of Hi Air's rehabilitation plan, we expect a significant improvement in its financial structure and the establishment of a new management system, positioning it as a sustainable air transportation company."