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(LEAD) Creditors map out normalization plan for Asiana after deal collapses

All News 18:02 September 11, 2020

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SEJONG, Sept. 11 (Yonhap) -- South Korea's finance ministry said Friday that state-run creditor banks have mapped out a plan to normalize operations of debt-laden Asiana Airlines Inc. after Hyundai Development Co.'s deal to buy the airline collapsed.

Finance Minister Hong Nam-ki held a meeting with economy-related ministers, financial regulators and heads of state-run creditor banks earlier in the day, during which they discussed about the plan to normalize operations of Asiana Airlines, the ministry said in a statement.

The ministry did not elaborate about the normalization plan, but creditor banks said they will inject 2.4 trillion won (US$2 billion) into Asiana Airlines.

(LEAD) Creditors map out normalization plan for Asiana after deal collapses - 1

"During the meeting, creditors briefed participants about a plan to normalize operations of Asiana Airlines, including market stabilization measures," the ministry said in a statement.

In December last year, Hyundai Development signed a deal to acquire a 30.77 percent stake in Asiana from Kumho Asiana Group, as well as new shares to be issued and Asiana's six affiliates, for 2.5 trillion won.

But, the deal had faltered due to the airline's snowballing debt and the coronavirus pandemic's impact on the travel industry.

kdh@yna.co.kr
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