Ex-CEO of Korea’s Eastar Jet charged with embezzlement

South Korean prosecutors seek arrest of Eastar Jet founder

Korea’s Eastar Jet ready to open bids for stake sale - CEO

Eastar Jet (ESR, Seoul Gimpo) plans to open bidding for the sale of a majority stake in the airline by April 20, then to select a new investor by early May and resume flights in June, Kim You-sang, the company’s chief executive has told Yonhap News Agency.

Kim claimed that a number of companies had shown an interest in acquiring Eastar Jet since the Seoul Bankruptcy Court initiated corporate rehabilitation proceedings at the grounded and indebted low-cost carrier on February 4, three weeks after granting it insolvency and protection from creditors.

Its Air Operator’s Certificate (AOC) will be reinstated once the court accepts the restructuring and rehabilitation schemes, the chief executive assured.

Eastar Jet plans to issue a bid announcement between April 15 and 20, with the approval of the court, and will soon decide whether to choose an investor through a “stalking-horse” manoeuvre or an open auction. In the former, a preliminary preferred bidder would be chosen ahead of an auction, with the stalking horse setting the low-end bidding price which other bidders...

Korea’s Eastar Jet may resume flight ops in late 2Q21 - CEO

Rising chances of an acquisition mean that Eastar Jet (ESR, Seoul Gimpo) could resume flight operations in June, the indebted low-cost carrier’s chief executive confirmed to the Yonhap News Agency on February 18.

The number of potential buyers, including a private equity fund and a construction company, has risen from four to six or seven, with the acquisition process set to be finalised by late May, sources said.

Seoul Bankruptcy Court initiated corporate rehabilitation proceedings at the grounded carrier on February 4, three weeks after granting it insolvency and protection from creditors. The move, coupled with a drastic downsizing of the company, has raised interest in it among potential buyers.

Eastar Jet has reportedly opted to negotiate a potential acquisition through a “stalking-horse bid” in which an insolvent company seeks a buyer from a pool of bidders while already having selected an initial bidder in an effort to maximise the value of its assets.

CEO Kim You-sang confirmed to Yonhap that “six to seven companies have contacted Eastar with the intention to make an...

Korea’s Eastar Jet pursues more job cuts; ex-exec charged