Eastar Jet Accelerates Normalization "Able to Submit Rehabilitation Plan Without Extension"

[Asia Economy Reporter Dongwoo Lee] Eastar Jet plans to submit its rehabilitation plan to the court as scheduled next week to accelerate the normalization of its operations. By submitting the rehabilitation plan on time, the company aims to alleviate concerns that the priority negotiation status of Seongjeong Co., Ltd. could be shaken due to delays in repayment rate negotiations with major creditors.

According to the aviation industry on the 10th, Eastar Jet intends to complete repayment amount negotiations with major creditors such as leasing companies by the 17th and submit the rehabilitation plan containing the confirmed creditor amounts to the Seoul Rehabilitation Court. Currently, only the calculation of creditor amounts with major aircraft leasing companies remains, and the company plans to finalize negotiations by next week. Earlier, Eastar Jet had applied for a two-month extension for submitting the rehabilitation plan in July, citing the need to restore its IT system for detailed creditor amount calculations.

The amount of public claims that Eastar Jet must prioritize repayment for, including salaries and severance pay for current and former employees, is approximately 70 billion KRW. Including rehabilitation claims, the total creditor amount is estimated to be around 200 billion KRW. Seongjeong Co., Ltd. has currently paid a deposit of 11 billion KRW out of the total 108.7 billion KRW for acquiring Eastar Jet.

Seongjeong Co., Ltd. has stated that if the court sets the date for the creditors' meeting within a month after the rehabilitation plan is submitted, it can make an early payment of the remaining amount. Although the court sets the deadline for full payment up to five business days before the creditors' meeting for repayment rate negotiations after the rehabilitation plan submission, Seongjeong intends to make an early payment to reaffirm its acquisition commitment and accelerate Eastar Jet's normalization.

An Eastar Jet official said, "Once the calculation of creditor amounts with major leasing companies is finalized, we understand that Seongjeong is considering early payment of the acquisition amount at least five business days before the creditors' meeting."

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