September 16, 2020 13:24
Property developer HDC Hyundai Development on Tuesday blamed Kumho Industrial for the failure of its buyout of Asiana Airlines and pledged to sue for the return of its deposit.
HDC paid a W250 billion down payment to Kumho before the deal turned sour amid wrangling over the troubled airline's mounting debts (US$1=W1,181).
HDC in a statement said the deal fell through because the seller "failed to meet preconditions" of the deal.
The property developer had insisted on another round of due diligence because "significant" changes took place in Asiana's financial health between late last year, when the deal was inked, and the coronavirus outbreak.
But Kumho and Asiana's main creditor, state-run Korea Development Bank, refused.
HDC also accused the creditors of being negligent. It said that KDB did not present specific plans to salvage the sale when its chairman, Lee Dong-gull, met with HDC chief Chung Mong-gyu on Aug. 26. "We plan to look into legal matters and respond accordingly," HDC said.
The HDC-led consortium was picked as the preferred bidder last November and signed a share purchase agreement the following month. But it hit the rocks once the epidemic broke out and Asiana's debts soared.
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