Asiana deal at critical juncture, leaning toward collapse

Creditors of embattled Asiana Airlines are drawing up a set of countermeasures against the potential rupture of a deal to sell the carrier, as local property developer Hyundai Development Co. is leaning toward withdrawing from the 2.5t-won (US$2.1b) deal, industry sources said Sunday. The state-run Korea Development Bank (KDB) last week warned that HDC should proceed with the deal to buy Asiana Airlines, rejecting HDC's request for another round of due diligence on the country's No. 2 air carrier. In December, the HDC-Mirae Asset Daewoo consortium signed the deal to acquire the carrier from Kumho Industrial, a construction unit of Kumho Asiana Group, as well as new Asiana shares to be issued and Asiana's six affiliates, for 2.5t won. HDC has completed seven weeks of due diligence on Asiana Airlines. But HDC has demanded an additional 12 weeks of due diligence on the debt-laden carrier beginning in mid-August, claiming it will be forced to shoulder Asiana's heavy debts if it acquires the airline without looking into its current financial conditions hit hard by the coronavirus pandemic. The creditors think Tuesday is the deadline for HDC to show its stance of whether to push ahead with its acquisition of Asiana Airlines as all requirements for the deal are met.<br/>