SEOUL (REUTERS) – South Korea’s Kumho Industrial said on Friday that its plan to sell Asiana Airlines, South Korea’s No 2 carrier, to Hyundai Development had fallen apart.
South Korea will inject 2.4 trillion won (S$2.76 billion) into Asiana, state-run Korea Development Bank said on Friday.
Hyundai Development and brokerage Mirae Asset Daewoo agreed in December to purchase control of Asiana for about 2.5 trillion won.
The deal’s collapse came after Hyundai Development called for renegotiations, as debt surged at Asiana Airlines which is grappling with the impact of the Covid-19 pandemic hitting travel demand.
“Hyundai Development Co… failed to make a decision until the final deadline,” Kumho said in a statement.
A Hyundai Development spokesperson could not be immediately reached for comment.
Asiana, which competes with bigger Korean Air Lines, had a total debt of 12.8 trillion won as of end-June, up more than 33 per cent from a year earlier, according to its regulatory filing.
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