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Korean Air to decide up to $820 million rights issue this week: Yonhap - Metro US

Korean Air to decide up to $820 million rights issue this week: Yonhap

Korean Air's passenger planes are parked following outbreak of COVID-19, at Incheon International Airport

SEOUL (Reuters) – South Korea’s largest airline Korean Air <003490.KS> will decide whether to sell up to about 1 trillion won ($820.24 million) in shares in a board meeting on Wednesday, Yonhap said on Monday, as finances come under strain from the coronavirus pandemic.

Korean Air’s board is expected to decide on the rights issue, in which stocks will likely be first allocated to the carrier’s shareholders, followed by general public, Yonhap news agency reported, citing unidentified sources in the aviation industry.

A source confirmed that Korean Air is holding a board meeting on Wednesday.

Korean Air declined to comment.

State-owned banks in South Korea said last month they would provide up to 1.2 trillion won in liquidity to support Korean Air.

(Reporting by Joyce Lee; Editing by Kim Coghill)

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