HDC to Sue for Return of Asiana Deposit
16 September, 2020
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 offer fell through for the reason that seller "didn't meet preconditions" of the offer.
The house developer had insisted on another round of due diligence because "significant" changes took place in Asiana's financial health between late this past year, when the offer was inked, and the coronavirus outbreak.
But Kumho and Asiana's main creditor, state-run Korea Development Bank, refused.
HDC also accused the creditors to be negligent. It said that KDB didn't 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 consider 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 next month. Nonetheless it hit the rocks once the epidemic broke out and Asiana's debts soared.
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