JEJU air may terminate plans to acquire 51.17% stake in Eastar Jet if contract conditions not met

3 July, 2020

JEJU air reportedly issued a notice to Eastar Jet to fulfill the predetermined conditions of the contract the two parties signed in Mar-2020 for JEJU air to acquire a 51.17% stake in Eastar Jet within 10 business days, or JEJU air will consider terminating its acquisition plans (Reuters/Yonhap News/Korea JoongAng Daily/Hankook Ilbo, 02-Jul-2020). JEJU air requires Eastar Jet to settle outstanding debts within the 10 business days deadline in order to proceed with the acquisition, including outstanding aircraft leasing payments, overdue salary payments to employees and outstanding payments to various suppliers. Eastar Jet's outstanding debts are estimated to be between KRW80 billion (USD66.7 million) and KRW100 billion (USD83.4 million).