SEOUL: South Korea's Hyundai Development Co said on Tuesday it wants new terms for its acquisition of Asiana Airlines after debt at the troubled carrier increased by some $3.8 billion.
A consortium led by the property developer agreed in late December to purchase the airline for about 2.5 trillion won ($2.1 billion).
Since then, however, Asiana Airlines recognised an additional 2.8 trillion won of debt as of end-2019 and borrowed 1.7 trillion won more, Hyundai Development said in a statement.
The unexpected increase, the carrier's failure to discuss the situation with Hyundai Development before incurring more debt and its support of unsound affiliates had prompted Hyundai Development to ask creditors to renegotiate the deal, the developer said.
Hyundai Development added that it still wants a deal to proceed despite the COVID-19 pandemic that has hammered the aviation industry.
"Whether the group survives or not hinges on this deal," it said.
Asiana Airlines declined to comment. Korea Development Bank, its lead creditor, did not have an immediate comment.
The airline had total debt of 13.2 trillion won as of end-March, according to regulatory filing. - REUTERS
source https://www.thesundaily.my/business/hyundai-development-wants-to-renegotiate-asiana-airlines-acquisition-after-debt-surge-BA2543726
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