Seoul court starts rehabilitation proceedings for Eastar Jet

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Seoul court starts rehabilitation proceedings for Eastar Jet

The Seoul Bankruptcy Court decided Thursday to initiate corporate rehabilitation proceedings for financially troubled budget carrier Eastar Jet.
The court appointed two managers, including Easter Jet CEO Kim You-sang, to oversee the rehabilitation process, despite a demand from the company's pilot union to exclude sitting executives from the interim caretaker team.
The court will receive Eastar Jet-related financial statements from stakeholders, such as bond and security rights certificates, from Feb. 19 to March 4. Eastar Jet is required to submit a rehabilitation plan to the court by May 20.
The budget airline has had difficulties in finding a strategic investor since July of last year when Jeju Air scrapped its plan to acquire the low-cost carrier.
In January, Eastar Jet applied for court receivership to find a way to continue its air transport business through a merger or acquisition.
The court later ordered preservation measures and comprehensive prohibition to prevent creditors from seizing or selling company assets and freeze all bonds before the carrier's rehabilitation proceedings.
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