Securing shares of Hanjin Kal, a trilateral alliance, equipped with loaded ammunition

Trilateral Alliance Secures Participation in Hanjin Kal, “Equipped with Real Ammunition” (complete)
KCGI recently secured 130 billion won through stock mortgage loans … Cho Won-tae extends mortgage loan
The biggest variable in the interim injunction request for the issuance of new shares in the observation of the end of the dispute over Hanjin Kal

(Seoul = Yonhap News) Reporter Kim Nam-kwon = The ‘three party alliance’, which is in conflict with Hanjin group president Cho Won-tae, is focusing on securing a stake in Hanjin Kal.
Based on the investment of KDB funds, it is analyzed that the acquisition of Asiana Airlines by Korean Air has ended the dispute over management rights.

According to the electronic disclosure system of the financial supervision service on the 22nd, Grace Holdings, a subsidiary of the private equity fund KCGI, signed a contract with Meritz Securities on the 12th with 5.5 million Hanjin Kal shares as collateral.
KCGI has formed a trilateral alliance with Cho Hyun-ah, former vice president of Korean Air and Bando E&C, and is having a dispute with President Cho and Hanjin Kal over management rights.
The contract was signed on the day news of Korean Air’s acquisition of Asiana Airlines was announced in the media.
KCGI received a 130 billion won loan through this contract.
A KCGI official explained: “There is also a part to prepare for the purchase of a warrant (warrant) issued by Hanjin Kal, and the money has been prepared in advance because there will be a situation where the money will be put. in the company through a capital increase “.
Former Vice President Cho Hyun-ah also secured cash through equity-backed loans from Woori Bank (300,000 shares), Korea Capital (28,000 shares) and Sangsin Securities (30,000 shares) on 29-30 last month.
It can be used to pay inheritance tax on property inherited from the death of the late president of the Hanjin Yang-ho Cho group, but it is noted that it is not intended to prepare management rights disputes as it is combined with the cash security of KCGI.

The trilateral alliance is taking a life or a death to stop the integration of Korean Air and Asiana Airlines.
In the process of Korean Air’s acquisition of Asiana Airlines, the prevailing prospect is that KDB will secure a 10.7% stake in Hanjin Kal to serve as a friend of President Cho.
In this agreement, KDB will invest 800 billion won in Hanjin Kal, which is at the top of the governance structure of the Hanjin Group. 500 billion won is a method of acquiring exchangeable bonds (EB) using Korean Air shares as the underlying asset of 300 billion won through participation in a paid capital increase.
Currently, the stake in the trilateral alliance is 46.71%, ahead of President Cho’s friendly share (41.4%), but the situation after the capital increase is unlikely to develop in favor of the trilateral alliance.
“Assuming Saneun is a friendly stake on President Cho’s side, we estimate President Cho’s stake will rise to 47.33% (excluding subscription rights bonds),” said Yang Ji-hwan, a researcher with Daishin. Securities. Even though the tripartite alliance converts all new shares into shares, the percentage of shares is 42.9%, a gap of 4.43% from President Cho’s stake. “
First of all, Saneun is showing a position of “will not exercise friendly voting rights to either party”.
However, considering the legal contractual relationship of the trilateral alliance and the position of the KDB that the entity has not been officially confirmed, there are many opinions that it is classified as an amicable participation on the side of President Cho.
This is the context that KCGI recently asked the court for an interim injunction to ban the issuance of new shares against Hanjin Kal’s termination for a third-party paid capital increase.
If the court cites an interim injunction, the transaction for the consolidated airline is canceled.
The Bank of Korea, however, expressed confidence in the request for an interim injunction, saying, “We have examined lawsuits or subpoenas through numerous law firms.”
With the court ruling drawing attention, President Cho’s recent actions are also interesting.
President Cho extended a loan (10 billion won) which received 425,000 shares as collateral from Hana Bank on the 5th and extended a loan (2.7 billion won) which received 150,000 Hanjin Kal shares as collateral from Hana Financial Investment.
The loan extension received by Hana Financial Investment was carried out on August 17th, but the disclosure requirements were met on the 5th.
Hanjin Kal said: “It was not a disclosure requirement when the Hana Financial Investment loan extension was established, but the disclosure obligation was established on November 5 and the previous changes were recently disclosed together.”
In connection with the launch of an integrated airline, there are comments that it has become a matter of public announcement by taking President Cho’s Hanjin Kal share as collateral.
KDB announced that if management performance is insufficient after the integration of Korean Air and Asiana Airlines, Chairman Cho’s guarantee will be discarded if management performance is insufficient.
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