Midsize Property Developer Gets Nod to Buy Eastar Jet

  • By Song Hye-jin

    June 23, 2021 13:00

    Midsize property developer Sungjung has been chosen as the preferred bidder to acquire cash-strapped budget carrier Eastar Jet, the airline said Tuesday.

    A consortium led by underwear maker Ssangbangwool was selected as the follow-up bidder.

    Sungjung offered W110 billion and will now spend about a week conducting due diligence before signing the deal (US$1=W1,135). Around W70 billion of that money will be used to pay back wages and severance pay to Eastar Jet staff and the rest to pay back creditors.

    /Yonhap

    Industry watchers believe Sungjung will have to spend much more to get the ailing carrier back on its feet and wonder if it has the money. A new air operator's license alone would cost around W150 billion.

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