이 기사는 2021년 05월 21일 07:16 thebell 에 표출된 기사입니다.

South Korean budget carrier Eastar Jet will start its sale through a stalking-horse bid process as it has secured its stalking-horse bidder.

The seller will receive letters of intent and confidentiality agreement from potential buyers by the end of this month, according to the Seoul Bankruptcy Court. The low budget carrier will be sold through a public tender, which will be held from June 1 to 7 after a preliminary due diligence.

Eastar Jet signed a deal with an unknown mid-sized company on Friday to grant the firm the priority to make the first bid while giving others the chance to place their bids.

Some market observers noted that it is essential for Eastar Jet to draw up a rehabilitation plan which could earn creditors’ agreement in the future as it is trying sell its management rights as part of its rehabilitation proceedings.

Eastar Jet will repay some of its debts using the proceeds from the sale while carrying out its sale process. However, if the liquidation value is low, it may be difficult for the airline to obtain the creditors’ agreement as the reimbursement amount corresponding to the sale price will also decrease.

The liquidation value of Eastar Jet is around 4.2 billion won ($3.7 million). Market insiders said the sale price has to be at least in the mid-100 billion won range as its debts are estimated at over 200 billion won.

Around six prospective buyers are reportedly considering whether to submit their letters of intent in the bidding slated for next month. Market insiders are paying attention whether there will be a potential buyer which will outbid the stalking-horse bidder. (Reporting by Seon-young Kim)