Asiana creditors bracing for collapse of Hyundai-led acquisition

Asiana Airlines' creditors are looking at various options in the collapse of a deal to sell the carrier to a local consortium led by HDC Hyundai Development Co.

Financial Services Commission (FSC) Chairman Eun Sung-soo revealed that Asiana and its creditor banks are looking at measures to help the carrier stay afloat if the consortium withdraws from its plan.

Eun noted that Asiana is qualified for the 40 trillion won stabilization if the company applies for it.

FSC Vice Chairman Sohn Byung-doo said that there are consultations among related institutions about Asiana becoming state-owned.

The consortium's deal to acquire Asiana Airlines has been at risk due to sharply reduced travel demand, pushing up Asiana's debts.

There are also differences over acquisition terms between HDC and Kumho, which owns a 30.77 percent stake in Asiana Airlines.

HDC recently demanded another due diligence on Asiana in what is perceived to be a step in withdrawing from the deal.

Earlier, HDC called for renegotiations with Asiana creditors over the acquisition terms, citing Asiana's snowballing debts as a factor, describing it as damaging the acquisition value of Asiana.

From July last year to March this year, Asiana's debts surged by 4.5 trillion won.

HDC didn't confirm the notification of a letter by Kumho Industrial on July 14, demanding that it complete the deal within August.