Hanjin-KCGI, scolding on interrogation day “The aviation sector collapses when a temporary injection is mentioned” vs.

Input 2020.11.25 14:28

Hanjin Group “If the temporary arrangement is mentioned, the Korean aviation industry collapses”
KCGI “You must not threaten the judiciary and the people by taking key industries and jobs hostage”

The Hanjin Group and the private equity fund KCGI (strong wealth fund) are still fighting against each other on the 25th, the deadline for questioning the court’s request for a temporary injunction against the issuance of new shares.

Hanjin Group said in a statement on the morning of the day: “A hearing is scheduled today for a temporary injunction to ban the issuance of new Hanjin Kal shares to determine the fate of the Korean airline industry.”

Hanjin Group said: “If an interim injunction is cited, the Korean aviation industry will collapse. 100,000 jobs are far more important than private equity profits.”

“In the contract between the Korea Development Bank and Hanjin Kal, the success of Hanjin Kal’s capital increase Korean Air (003490)of Asiana Airlines (020560)It’s a prerequisite for the acquisition, “he said.” If a provisional provision is mentioned, Hanjin Kal’s capital increase is blocked and the acquisition becomes essentially impossible. “

Hanjin Group said: “(In case of a temporary injunction), it becomes impossible for Asiana Airlines to raise funds of 600 billion won, which are urgently needed until the end of the year.” If it leads to a large-scale unemployment situation, “he said.

Hanjin Group also said: “Currently, Hanjin Kal cannot borrow credits as corporate bonds and it is difficult to borrow collateral because most of the assets that can be provided as collateral are out of stock.” It is said that it is inevitable that a tripartite capital increase for the Korea Development Bank is currently being promoted.

KCGI immediately distributed materials that refuted the Hanjin Group’s position statement. “We must not threaten the judiciary and the people by taking key industries and jobs hostage. We must await the judgment of the judiciary with humility and sincerity”.

KCGI said: “It is difficult to understand that Hanjin Kal, who promoted Korean Air’s business surplus, is now saying that it is difficult to issue debt and bonds, as well as issue capital increases assigned to shareholders.” I just didn’t have it. “

KCGI also told KDB, “it violates the rights of current shareholders to invest in Hanjin Kal, which is in dispute over management rights by mobilizing a blood tax while forcing the government-run bank to take over Asiana Airlines under unreasonable conditions. about the position of the Hanjin group, he said: “It is impossible to threaten the judiciary and create anxiety among the people.”

The Seoul Central District Court is expected to question the interim injunction request submitted by KCGI to the court at 5pm the same day, saying, “Please stop issuing new Hanjin Kal shares.” Inside and outside the sector, the court ruling is expected to come out as early as this week and by the 1st of next month at the latest. This is because the 2nd of next month is the payment date of Hanjin Kal’s capital increase.

This questioning was in response to a request for a temporary injunction against the issuance of new shares submitted by KCGI to the court on the 18th. KCGI argued that Korea Development Bank’s investment in Hanjin Kal is a means of defending management rights and control of group president Hanjin Cho Won-tae.

If the court sues KCGI’s request for an interim injunction, Hanjin Kal will not be able to issue a third party capital increase. In this case, Hanjin Group’s acquisition of Asiana Airlines will inevitably be discontinued.