HDC Hyundai Development Co.’s planned takeover of Asiana Airlines Inc. has fallen through as the preferred buyer renewed its request for further due diligence on the beleaguered airliner after refusing to accept creditors’ latest proposal to cut acquisition prices.
South Korea's state-run Korea Development Bank (KDB), the carrier’s main creditor, has declared the deal collapsed and said it would inform HDC early next week of its decision to end talks, according to a KDB official.
“We believe HDC has no intention to acquire Asiana after all. We’ll end talks and immediately embark on Plan B.”
Creditors, which also include the Export-Import Bank of Korea, will now put Asiana under their management, provide financial support from state funds, and then seek another buyer later, sources said.
Asiana and its creditors are expected to seek as much as 2 trillion won in aid from the 40-trillion won state fund established to assist key industries in riding out the coronavirus-initiated economic slowdown.
From January to June, the carrier’s net losses deepened to 432.9 billion won from 267.4 billion won in the same period last year.
By Kyung-Min Kang and Sang-eun Lucia Lee
Kkm1026@hankyung.com, selee@hankyung.com