S Korea's Asiana fights to retain multi-billion deposit

Asiana Airlines has confirmed that HDC Hyundai Development Company and Mirae Asset Securities will appeal a November 2022 court ruling that allowed the airline to keep a multi-billion won deposit related to a failed takeover bid. The out-of-pocket parties filed their appeal last week. "The announcement on this day [December 8] is that Mirae Asset Securities is also appealing against the lawsuit for the return of the down payment, which was defeated in the first trial following HDC Hyunsan on December 7," an Asiana spokesperson told local media. The matter relates to a 2019/20 bid by HDC and its consortium partner Mirae to take over the airline. The bid failed, largely due to Asiana's shifting financial fortunes and an unwillingness from the airline to allow follow-up rounds of due diligence. However, HDC and Mirae had also deposited KRW217.7b won (US$165m), which represented 10% of the takeover price, into an escrow account. After the collapse of the talks, Asiana argued that under the terms they were entitled to keep the deposit. The dispute was heard in the Seoul Central District Court last month where the ruling was in Asiana's favour. The judge ruled that the airline did not have a refund obligation. While Asiana welcomed the decision, HDC said at the time that the decision was "negative" and that they would appeal.<br/>