Jeju Air, Eastar Jet Acquisition Contract Deadline May Be Extended

[Asia Economy Reporter Dongwoo Lee] Jeju Air announced on the 26th that the scheduled issuance date of convertible bonds (CB) may be changed to a date mutually agreed upon by the parties involved. Jeju Air stated that the CB payment date and subsequent maturity date will be finalized after mutual agreement and re-announced.

Jeju Air had planned to issue CBs worth 10 billion KRW and invest these funds into Eastar Jet. If the scheduled CB issuance date is changed, the deadline for Jeju Air's acquisition contract of Eastar Jet may also be delayed accordingly.

Initially, the market viewed June 29, based on the CB payment date, as the closing date for Jeju Air's acquisition deal of Eastar Jet.

Jeju Air announced that the scheduled date for acquiring Eastar Jet's shares in April will be changed from April 29 to "a date mutually agreed upon by the parties, reasonably considering that all unmet preceding conditions will be fulfilled." The scheduled CB payment date was also changed from April 29 to June 30.

However, Jeju Air is known to hold the position that the acquisition contract itself will not be terminated just because preceding conditions such as overseas corporate merger reviews have not yet been fulfilled and Eastar Holdings does not pay the CB amount.

On the other hand, Eastar Jet has regarded the end of this month as a "deadline" to confirm Jeju Air's acquisition intention, as it faces an actual bankruptcy risk if the month passes.

This content was produced with the assistance of AI translation services.