HDC calls for additional review of Asiana's books

SEOUL, July 26 (Yonhap) -- HDC Hyundai Development Co. called Sunday for an additional review of the books of cash-squeezed Asiana Airlines Inc., including sharply increased debts, ahead of the completion of its acquisition of the full-service carrier.

The renegotiation of the proposed acquisition should be preceded by the additional review of changes in Asiana's financial status for 12 weeks from mid-August, HDC Hyundai Development said in its emailed statement.

The construction unit of South Korea's conglomerate HDC Group also urged Asiana to explain the latest developments in its financial sector, including additional debts worth 2.8 trillion won (US$2.3 billion) and the ongoing borrowing of 1.7 trillion won since July last year.

The scrutinization of Asiana's financial status is a precondition for completing its deal to acquire stakes in Asiana, HDC Hyundai Development said.

HDC Hyundai Development claimed that it has yet to receive formal data related to Asiana's financial status despite making an official request about 10 times since early April.

Without meeting its request, the call to finish the deal by Asiana is a groundless claim and an action completely defying the deal signed with a consortium-led by HDC Hyundai Development, the HDC group's construction company said.

Asiana was jolted by the COVID-19 pandemic and has seen its cash shortage deepen, so the country's two state banks, the Korea Development Bank and the Export-Import Bank of Korea, plan to pour a combined 1.7 trillion won into the carrier. Last year, the creditors of Asiana extended a total of 1.6 trillion won to the carrier.

In its latest self-help plans, 10,500 workers of Asiana have been put under unpaid leave for 15 days a month since April until business circumstances get back on track.

In December, the HDC-Mirae Asset Daewoo consortium signed a deal to acquire a 30.77 percent stake in Asiana from Kumho Industrial Co., a construction unit of Kumho Asiana Group, as well as new Asiana shares to be issued and Asiana's six affiliates for 2.5 trillion won, with a plan to complete the acquisition by June 27.

But the HDC-led consortium didn't push ahead with the proposed deal amid the COVID-19 pandemic and differences over terms of the deal.

Asiana's debts jumped by 4.5 trillion won from July last year to March this year, and its debt-to-equity ratio rose by more than 300 times during the same period.

ksnam@yna.co.kr
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