Reporter Ji-Hyeong Kim
Industrial Bank that is State Bond Bank of Asiana Airlines, Inc suggests that KOREAN AIR LINES CO.
LTD takes over Asiana Airlines, Inc. In the market, After the made a presentation this way which was considered unpredictable method, Stakeholders, Market Participants, Civic groups, and even some Lawmakers were repulsion. The way Industrial Bank chose was got caught up before the start.
Restructuring for Insoe-like enterprises is expecting to follow Process. First, Creditors who lent money for Insoe-like enterprises have commitments to improve financial structure. Within a certain time limit, Creditor get a plan to normalize financial structures from enterprises.
This is the warning for enterprises. If this solution didn’t work, creditor starts to restructuring the company. Second, Creditor becomes a Shareholders. It means creditor participates in company’s management directly. Third, Existing big shareholders may give up their some stakes.
Fourth, It’s time to return the investment. By Restructuring, Company will be normal and Value of the company will be great. Than sell the last stakes.
Another way is creditor participates in company’s management directly and soon sell the stakes. In this method, It must need buyers. Industrial Bank wanted to do this way.
Hyundai Development Consortium hoped to take over Asiana Airlines, Inc. But Hyundai Development Consortium doubted Asiana Airlines, Inc’s financial. So This was canceled.
Recently, Industrial Bank suggested the solution. And This solution is similar than Fifth way. Not doing a restructure, and KOREAN AIR LINES CO. LTD occupies Asiana Airlines, Inc. But Looking in the detailed structure, This will not same. Funds for taking over Asiana Airlines, Inc are from shareholders.
Hanjin Group doesn’t spend money to take Asiana Airlines, Inc. And President of Hanjin gets a force for the good. Industrial Bank becomes president of Hanjin’s good force. Following is The reason why this solution picked by Industrial Bank.
If Industrial Bank takes responsibility to Asiana Airlines, Inc, Over the 800 billion will be committed as a public funds. And Second is the Keeping hiring. If restructuring, Jobless will be happened. But this is not welcomed. Serious problem is Industrial Bank becoming president of Hanjin’s good force.