HDC Hyundai Development Company Repeatedly Requests Reinspection of Asiana Airlines

[Asia Economy Reporter Yoo In-ho] HDC Hyundai Development Company (HDC) reiterated its request on the 30th for the contracting parties to participate in a re-due diligence to ensure the normalization of Asiana Airlines and the successful completion of the transaction.

HDC had proposed on the 24th to initiate a re-due diligence process on Asiana Airlines and its subsidiaries for 12 weeks starting from mid-August, in order to reassess the acquisition status of Asiana Airlines. At that time, HDC reaffirmed its initial commitment to contribute to the normalization of Korea's aviation industry and the enhancement of international competitiveness through the acquisition of Asiana Airlines, addressing Kumho Industrial and others.

However, despite HDC’s proposal for re-due diligence, Kumho Industrial and Asiana Airlines sent a certified letter on the morning of the 29th warning of contract termination and forfeiture of the penalty deposit. In response, HDC expressed serious concerns.

HDC explained that although Kumho Industrial and Asiana Airlines are judged to have already violated the acquisition contract due to unmet precedent conditions, allowing for contract termination and refund of the deposit, HDC hopes to proceed with the re-due diligence for a successful transaction closure.

An HDC representative stated, “Through re-due diligence, it will be possible to have more advanced discussions on whether Asiana Airlines can endure future uncertainties and how much sacrifice stakeholders, including the contracting parties, should share,” adding, “If the creditors participate as observers or conduct the process jointly, the procedure can be carried out more efficiently.”

He further added, “We expect that transparent and open proceedings will lead to an accurate mutual understanding among the contracting parties regarding the differences between the situation at the time of the acquisition contract and the actual current situation.”

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