Meeting of CEOs of Kumho Industrial and HDC Hyundai Development Company

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[Asia Economy Reporter Yu Je-hoon] A meeting between the CEOs of Kumho Industrial and HDC Hyundai Development Company has been arranged.

According to the business community on the 20th, Seo Jae-hwan, CEO of Kumho Industrial, and Kwon Soon-ho, CEO of HDC Hyundai Development Company, met at an undisclosed location in Seoul to discuss the merger and acquisition (M&A) issues related to Asiana Airlines.

Previously, HDC Hyundai Development Company had requested a 12-week due diligence period to finalize the deal. They raised concerns about the sharp increase in debt and borrowings, unauthorized borrowing and perpetual bond issuance without the buyer's prior consent, and financial support to insolvent affiliates.

Subsequently, the creditors and Kumho Industrial countered with a face-to-face negotiation proposal, stating that "sufficient data has been provided," and as HDC Hyundai Development Company again proposed a meeting between the CEOs, this meeting was arranged.

Even after the agreement, both sides expressed differing views on the purpose of this meeting, with HDC Hyundai Development Company claiming it was "for due diligence" and Kumho Industrial stating it was "to finalize the deal." There has been ongoing tug-of-war over practical discussions during the preparation process for the meeting.

So far, it is not known what results the two CEOs have achieved in the face-to-face negotiations. However, the industry views the significant differences between the two sides as casting doubt on whether a concrete agreement has been reached.

Meanwhile, KDB Industrial Bank proposed a meeting between the top executives of HDC Hyundai Development Company on the same day, aiming to confirm their acquisition intentions.

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