Hyundai Development wants to renegotiate Asiana Airlines acquisition after debt surge

South Korea’s Hyundai Development said Tuesday it wants new terms for its acquisition of Asiana Airlines after debt at the troubled carrier increased by some $3.8b. A consortium led by the property developer agreed in late December to purchase the airline for about 2.5t won ($2.1b). Since then, however, Asiana Airlines recognised an additional 2.8t won of debt as of end-2019 and borrowed 1.7t won more, Hyundai Development said. The unexpected increase, the carrier’s failure to discuss the situation with Hyundai Development before incurring more debt and its support of unsound affiliates had prompted Hyundai Development to ask creditors to renegotiate the deal, the developer said. Hyundai Development added that it still wants a deal to proceed despite the COVID-19 pandemic that has hammered the aviation industry. “Whether the group survives or not hinges on this deal,” it said.<br/>