The planned acquisition of Asiana Airlines is increasingly looking doomed.
Buyer HDC Hyundai Development Co demanded more detailed due diligence on the carrier as the fallout from the Covid-19 pandemic looks likely to scupper the deal.
"We proposed additional due diligence on Asiana Airlines and its affiliates for 12 weeks from mid-August in order to review the acquisition terms amid a worsening business environment," a company official told local media.
A month ago HDC called for terms to be renegotiated with Asiana creditors due to the current economic situation.
HDC cited Asiana’s ballooning debts for ‘damaging the acquisition value of the carrier.’
"We requested review of the acquisition terms several times but (parent company) Kumho Industrial and Asiana Airlines have continued to demand the deal’s completion without listening to our request," the official added.
Kumho reportedly sent a demand in writing that the deal must be completed by the end of August.
HDC agreed to the acquisition in December 2019 before the Covid-19 pandemic wrought havoc on the global airline industry.
