HDC, Mirae Asset lose in $190m lawsuit over failed Asiana takeover

HDC Hyundai Development Company and Mirae Asset Securities are not entitled to be refunded the combined 250b won ($190m) they had paid previously for their acquisition of Asiana Airlines from its parent company, Kumho E&C, which eventually ended in failure, according to a court ruling, Thursday. The Seoul Central District Court accepted the request from Asiana and Kumho to refuse the refund to HDC and Mirae Asset from the escrow account. The justice also ordered the defendants to pay a combined 1.5b won to the plaintiffs in compensation for their breach of contract. HDC unveiled its plan to lodge an appeal against the recent ruling, claiming that its appeal is intended to protect its shareholders and stakeholders. "It is regrettable that the court did not take into account negative effects from the seller's fault," the company said in its press release. Asiana welcomed the court's ruling. "HDC should accept the court decision and take follow-up measures in compliance with the ruling," the air carrier said. Their legal battle started two years ago after the HDC-led consortium, which had been selected as the preferred bidder for the Asiana takeover in November 2019, abruptly scrapped its plan to acquire the air carrier in September 2020, citing its snowballing debt. After hiring two of Korea's top law firms ― Yoon & Yang and Shin & Kim ― Asiana and Kumho filed the lawsuit in November 2020, claiming that the contract was canceled as HDC had remained reluctant to finish the deal. Story has details.<br/>