HDC Hyundai Development Company Expresses Regret Over Asiana and Creditors' Blame Shifting

[Asia Economy Reporter Yoo In-ho] HDC Hyundai Development Company expressed regret on the 6th toward Kumho Industrial and the creditors, who unilaterally insist on contract termination despite repeated requests for re-due diligence on Asiana Airlines.

HDC Hyundai Development issued a statement on the same day, emphasizing, "We have clearly expressed our intention to acquire," and added, "Despite the difficulties caused by COVID-19, we have promptly completed corporate merger reviews in various countries and raised a total of approximately 1.76 trillion KRW through rights offerings, corporate bonds, ABL issuance, and financial institution loans to secure acquisition funds, even bearing a massive annual financial cost of 46 billion KRW."

Earlier, Lee Dong-gul, chairman of the Korea Development Bank, held a press conference on the 3rd and stated, "HDC Hyundai Development already conducted a rigorous seven-week due diligence before the acquisition contract at the end of 2019," rejecting HDC's request for re-due diligence.

Additionally, they have notified HDC Hyundai Development to make a decision by the 12th, when the acquisition contract expires, on whether to maintain the contract.

HDC Hyundai Development pointed out, "The sellers, Kumho Industrial and Asiana Airlines, were unfaithful throughout the seven-week due diligence period," and criticized, "Kumho Industrial and Asiana Airlines provided only very limited data during the due diligence period, and there was almost no necessary data in Asiana's physical data room."

They further stated, "Kumho Industrial has made no genuine effort to close the deal and has been eager only to hide their faults and shift blame by providing minimal data," and condemned, "We want to ask what efforts they have made so far to close the deal."

HDC Hyundai Development has again requested re-due diligence on Asiana Airlines and its affiliates. A representative of HDC Hyundai Development said, "If the creditors observe or participate in the due diligence and Kumho Industrial and Asiana Airlines promptly provide the data requested by us and the creditors, the re-due diligence can proceed transparently and efficiently," adding, "We cannot comply with the sellers' demands such as additional payment of performance bonds, which have no basis in the contract."

They concluded firmly, "The responsibility for the failure to close the deal lies with Kumho Industrial and Asiana Airlines."

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