Korea’s Eastar Jet sold to property and golf course manager

Eastar Jet (ESR, Seoul Gimpo), whose revenue once reached KRW500 billion won (USD440 million), is expected to be sold to local real estate firm Sungjeong, also known as SJ, whose revenue last year was around KRW40 billion (USD35 million). A property rental company and golf course manager, Sungjeong confirmed on June 17 that it intended to carry out its preferential right as the “stalking horse” bidder to buy the indebted budget carrier. Sales advisor Deloitte submitted an official letter expressing this objective to Seoul Bankruptcy Court, a Sungjeong representative told local media. The only other contender, the bigger-budget clothing and underwear firm Ssang Bang Wool, submitted a bidding price of KRW110 billion (USD97.1 million), which was about KRW10 billion (USD8.8 million) higher than the price Sungjeong proposed in its earlier provisional contract. But Sungjeong decided to match the price, giving it the right as the preferential bidder to go ahead with the acquisition. However, the court must still confirm it as the final buyer. Sungjeong said it planned to sign an investment deal with Eastar Jet by early July and submit a debt restructuring plan and capital increase proposal to the court by July 20. Buyeo-based Sungjeong owns the golf course Baekje Country Club and Daeguk Construction, a wrecking and demolition firm. Sungjeong itself recorded KRW5.9 billion (USD5.2 million) in revenue last year, the country club KRW17.8 billion (USD15.7 million), and Daeguk KRW14.6 billion (USD12.9 million). Easter Jet still has two B737-800s and two B737-8s, the ch-aviation fleets advanced module shows, but it currently lacks an AOC.