S.Korea to inject $2 bln into Asiana Airlines after acquisition collapses (updated)

Kumho Engineering & Construction

11/09/2020 10:08

(Adds S.Korea plan to inject liquidity into Asiana, background)
    By Heekyong Yang and Joyce Lee
    SEOUL, Sept 11 (Reuters) - South Korea's Kumho Industrial
 002990.KS  said on Friday that its plan to sell Asiana Airlines
 020560.KS , South Korea's No.2 carrier, to Hyundai Development
Co  294870.KS  had fallen apart.    
    South Korea will inject 2.4 trillion won ($2.02 billion)
into Asiana, state-run Korea Development Bank said on Friday.
    Hyundai Development and brokerage Mirae Asset Daewoo
 006800.KS  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.  urn:newsml:reuters.com:*:nL4N2DM0FO
    "Hyundai Development Co... failed to make a decision until
the final deadline," Kumho said in a statement.
    A Hyundai Development Co spokesman could not be immediately
reached for comment.  
    Asiana, which competes with bigger Korean Air Lines
 003490.KS , had a total debt of 12.8 trillion won as of
end-June, up more than 33% from a year earlier, according to its
regulatory filing. 

 (Reporting by Joyce Lee and Heekyong Yang; Editing by David
Clarke and Muralikumar Anantharaman)
 ((hyunjoo.jin@thomsonreuters.com; 82-2-3704-5685; Reuters
Messaging: hyunjoo.jin.thomsonreuters.com@reuters.net))