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Eastar Jet to send letters of intent to candidates this week

Eastar Jet
Eastar Jet


Low-cost carrier Eastar Jet is speeding up a new acquisition deal after talks with Jeju Air were scrapped last month.

The airline said Sunday its financial advisers Deloitte Korea, Yulchon and Heungkuk Finance Group would send letters of intent to takeover candidates this week.

Three to four large funds and companies are reported to have already expressed their intention to invest.

An Eastar Jet official said, “There were some companies that can be known by their names, and some of them are in aviation-related industries.”

After sending out a letter of intent for investment, Eastar Jet plans to select preferred bidders, sign a memorandum of understanding and apply for court receivership in late September or early October.

At the same time as the court receivership, Eastar Jet is pushing to resume domestic flights. This is because if a company enters court receivership without any sales, it is more likely to lead to liquidation rather than rehabilitation.

Eastar Jet has also cut its massive workforce along with the search for new investors.

It has been receiving applications for voluntary retirement from full-time employees since Friday and it plans to announce a list of layoffs next month. 

By Shin Ji-hye (shinjh@heraldcorp.com)
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