Asiana Airlines will be put for sale again after a planned acquisition of the airline has collapsed.
According to the Asiana's main creditor Korea Development Bank (KDB), the airline's majority shareholder Kumho Industrial issued a notice for the deal termination with a consortium led by the Hyundai Development Corporation (HDC).
With the deal called off, state-owned banks KDB along with Export-Import Bank of Korea will inject KRW 2.4 trillion (USD $2 billion) to Asiana. Both lenders are expected to oversee a restructuring of Asiana for another attempt to sell the airline.
The deal between Kumho Industrial and the consortium which includes HDC and Mirae Asset Daewoo was made in December, which would have gave HDC a 31% controlling stake in the 2nd largest airline in South Korea worth around KRW 2.5 trillion (USD $2.1 billion). HDC would also inject KRW 1.7 trillion to help the financially struggling airline.
According to reports, HDC wanted to reassess the deal given the state of the airline's finances as a result of the aviation demand downturn amid the COVID-19 pandemic. During the first six months of 2020, Asiana reported net losses of around KRW 268 billion and debts at around KRW 11.5 trillion.
Asiana has received state cash infections worth around KRW 3.3 trillion (USD $2.78 billion) since 2019.