The Court Rejects Application for Injunction Claiming to Prevent the Issuance of New Shares
- Air Premia successfully finalized new shares subscription on July 22
SEOUL – Seoul Southern District Court rejected the application for an injunction to prevent new shares issuance on July 23. The court declared the purpose and the procedure of new shares issuance was fair and had no reason to be prevented.
Air Premia secured KRW 37billion paid-in-capital through Anchor and Series A funding round last year. Prior to the air carrier license amendment and Series B investment negotiation, Air Premia decided to increase KRW 10 billion sized capital for current shareholders in preparation of aircraft lease and purchase financing.
The application for injunction claimed that the issuance of the new shares provokes disadvantages to current shareholders to benefit specific shareholders. The court rejected respondent’s claims.
“The issuance of new shares is not for the benefit of any particular shareholder or management," the court said, "it is difficult to say that issuance of new shares is unfair or infringes shareholder interests."
Also, the court added, “it is hard to say that the conditions for issuance of new shares are uneven to shareholders. And it does not appear to affect the company's governance structure."
All of Air Premia’s core claims were accepted by the court, including the fact that the rights offering was adequately prepared for funding to implement the business plan and the amount was set to minimize the financial burden on shareholders and was conducted reasonably.
Air Premia completed the new shares subscription process successfully on the 22nd as planned. Air Premia achieved subscription rate of 76% among the amount of KRW 10 billion paid-in capital increase. Except for some of the parties who applied for a new share issue prohibition, it is the result of the participation of the majority of existing investors and employees which implies that the commitment to the company and the confidence of the success of the business model.
Air Premia completed a lease agreement for three new Boeing 787-9s in March and is in talks with several lessors and Boeing to introduce additional aircraft. Hanoi and Ho Chi Minh are scheduled to be launched next year and will start flights to Los Angeles and San Jose in the western United States from 2021.