Eastar Jet may be ready to take off in June amid progress in M&A scheme

South Korean budget carrier Eastar Jet under court management is expected to resume its flight services as early as in June amid progress in M&A endeavors after the collapse in its sale to bigger peer Jeju Air. According to industry sources on Thursday, Eastar Jet is engaged in negotiations with multiple stalking-horse bidders and may come to choose one by May 20 to receive an endorsement for its rehabilitation scheme from the bankruptcy court. In stalking horse bids, low-end price is preset to ensure a fair deal for a company in distress. Four candidates initially showed interest in Eastar Jet after the collapse of the deal with Jeju Air, but two to three more have entered the race later after the budget airline was placed under the court protection. Because existing large shareholders’ ownership could be reduced under court management, the company’s value has become cheaper to add to the appeal.<br/>