“Search for ways to utilize company technology and know-how through mergers and acquisitions”
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(Seoul = Yonhap News) Reporter Hwang Jae-ha Choi Jae-seo = Seoul Rehabilitation Court Rehabilitation Division 1 (Senior Deputy Judge Seo Gyeong-hwan) announced on the 15th that it will issue a preservation disposition and a comprehensive injunction against Eastar Jet, an airline that has applied for the commencement of rehabilitation procedures.
The preservation disposition and comprehensive injunction are measures to prevent creditors from seizing or selling Eastar Jet’s assets until the start of rehabilitation and freezing all bonds.
According to the court, Eastar Jet applied for rehabilitation procedures on the previous day to find a way to continue air transport business through M&A procedures.
In response, the court said, “In consideration of the fact that Eastar Jet has reduced costs by reducing manpower and returning aircraft, we plan to find a way to utilize the company’s expertise and know-how through M&A.”
In this process, ▲ appropriate use of the aviation alliance to which Eastar Jet has joined as a member ▲ Possibility to resume operation of the US Boeing B737-800 Max aircraft possessed by Eastar Jet ▲ Expectations for travel demand due to the end of the novel coronavirus infection (Corona 19) I decided to reflect it comprehensively.
The court issued a preservative disposition for prohibition of reimbursement, and stated that the repayment of commercial receivables for continuing and normal business activities was exceptionally permitted. It is explained that this is to ensure that Eastar Jet’s partners can continue their trading activities stably.
An official of the Rehabilitation Court said, “As the chief judge in this case, Chief Judge Kim Chang-kwon, has made an M&A through the rehabilitation procedure of Seongdong Shipbuilding and Marine Engineering under the Changwon District Law, Eastar Jet’s M&A process is expected to proceed smoothly and stably.”
Earlier, Eastar Jet failed an M&A with Jeju Air in the out-of-court restructuring process that began in December 2019, and last year had a difficult year due to the spread of Corona 19.
Eastar Jet originally tried to apply for corporate rehabilitation to the court after deciding on a preferred negotiator for the acquisition, but it is reported that companies that have shown intent to take over are under pressure and applied for the rehabilitation procedure this time.
When the court decides to start rehabilitation, it plans to select candidates for acquisition through a public sale procedure led by the court through M&A before approval of the rehabilitation plan.
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2021/01/15 15:45 sent