Eastar Jet Headquarters in Gangseo-gu, Seoul. Newsis
Eastar Jet, which has been pushing for resale after a merger and acquisition (M&A) with Jeju Air, is applying for corporate rehabilitation procedures (legal management).
According to the aviation industry on the 14th, Eastar Jet set an internal policy to enter the corporate rehabilitation procedure and started preparation work. As early as this week, the court is expected to apply for corporate rehabilitation.
Initially, Eastar Jet planned to go through corporate rehabilitation procedures after deciding on a preferred negotiator for the acquisition. It was because of the judgment that the court could choose bankruptcy without accepting the corporate rehabilitation application due to the poor financial situation of the company and the aviation industry recession.
However, the recent political controversy over Eastar Jet is known to have turned the direction in consideration of various circumstances, such as feeling the burden of being selected as the preferred negotiator for companies that showed their intention to take over.
Eastar Jet is planning to proceed with the sale process as scheduled after receiving the decision to commence rehabilitation from the court.
Meanwhile, it is reported that there are a total of four companies that have shown their intention to take over to Eastar Jet, including one Honam-based construction company, one financial company, and two private equity funds (PE). Eastar Jet is expecting more candidates to appear in the court’s public sale.
Reporter Eunbin Kim [email protected]
