Court Issues Comprehensive Injunction Against Eastar Air's "Rehabilitation Application"

Eastar Jet Headquarters, Gangseo-gu, Seoul / Photo by Hyunmin Kim kimhyun81@

[Asia Economy Reporter Seongpil Cho] The court will issue a preservation order and a comprehensive injunction on the 15th for Eastar Jet, which has filed for commencement of rehabilitation proceedings. The preservation order and comprehensive injunction temporarily prohibit compulsory execution or disposal of the debtor's assets until a decision to commence rehabilitation proceedings is made.

The Seoul Rehabilitation Court, Division 1 (Chief Presiding Judge Seokyung Hwan Seo), stated on the day, "Payment for commercial claims related to normal business activities will be exceptionally permitted to allow partner companies to continue stable trading activities." The preservation order and comprehensive injunction for Eastar Jet are scheduled to be issued at 4 p.m. on the same day. Earlier, Eastar Jet filed for commencement of rehabilitation proceedings with the court on the 14th. After failing the M&A with Jeju Air and facing adverse conditions such as the COVID-19 pandemic, Eastar Jet reportedly experienced management difficulties and filed for rehabilitation this month.

The court will consider factors such as ▲appropriate utilization of airline alliances ▲possibility of resuming operation of the Boeing B737-800 MAX aircraft manufactured by the U.S. Boeing company owned by Eastar Jet ▲expectations of explosive travel demand following the end of COVID-19 until a decision to commence rehabilitation proceedings is made. Through this, the court plans to explore ways for Eastar Jet to continue its air transportation business through M&A. Currently, four companies have shown interest in acquiring Eastar Jet: one construction company based in Honam, one financial company, and two private equity funds.

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