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South Korea's Eastar Jet acquired by VIG Partners

South Korea-based private equity fund VIG Partners has acquired Eastar Jet (ESR, Seoul Gimpo) in a deal reported to be worth KRW35 billion won (USD27.9 million). ch-aviation had recently reported that VIG was considering buying the low-cost carrier, and the private equity fund confirmed the acquisition on January 6, 2023.

The vendor, Seongjeong Co Ltd, purchased Eastar Jet for approximately KRW110 billion (USD87.7 billion) in February 2021 with hopes of restarting the insolvent and scandal-plagued carrier. Eastar Jet had stopped flying in 2020 as its financial condition worsened. But since buying the airline, Seongjeong has made little headway with a relaunch. The airline, which formally exited a corporate restructuring program in March 2022, has three B737-800s but is yet-to-be reissued its air operator's certificate (AOC) with government officials repeatedly questioning Eastar's financial viability. The need to shore up the carrier's finances is reportedly behind Seongjeong's decision to divest.

VIG Partners has confirmed that they will also raise KRW110 billion (USD87.7 million) via a rights issue by the end of January to pay...

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