Seongjeong Completes Payment of 63 Billion KRW for Remaining Balance of Eastar Jet Acquisition

[Asia Economy Reporter Dongwoo Lee] Seongjeong, the construction company selected as the preferred bidder for Eastar Jet, has paid the acquisition balance of 63 billion KRW.

Eastar Jet announced on the afternoon of the 5th that Seongjeong has completed the payment of the acquisition balance to the company. The payment was completed by the deadline, which is five business days before the creditors' meeting.

Previously, Seongjeong proposed a total acquisition fund of 108.7 billion KRW for Eastar Jet, of which 38.7 billion KRW is operating costs, leaving acquisition costs of approximately 70 billion KRW. From the acquisition costs, about 53 billion KRW in public claims including unpaid wages and severance pay, as well as 1.2 billion KRW in administrator fees, totaling 54.2 billion KRW, will be prioritized for repayment, and the remaining 15.8 billion KRW will be used to repay rehabilitation claims.

Earlier, Eastar Jet reported a revised rehabilitation plan to the Seoul Bankruptcy Court, estimating total claims at around 350 billion KRW. The repayment rate for rehabilitation claims is expected to exceed 4.5%, up about 1 percentage point from the previous 3.68%.

In particular, the increase in the repayment rate means that individual creditors will receive higher repayment amounts corresponding to concessions made by major lessors. This is expected to positively influence obtaining approval from more than two-thirds of the creditors at the creditors' meeting.

Eastar Jet's creditors' meeting is scheduled to be held as planned on the 12th. If more than two-thirds of the creditors approve at the meeting, Seongjeong will be confirmed as the new owner of Eastar Jet.

However, since obtaining Eastar Jet's AOC (Air Operator Certificate) remains a final acquisition condition for Seongjeong, creditor approval at the creditors' meeting is expected to be the last key hurdle.

Previously, Eastar Jet decided to proceed with the AOC application after obtaining creditor approval at the creditors' meeting.

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