Landing International Development Ltd, the Hong Kong-listed firm that owns and operates Jeju Shinhwa World in South Korea, has reached an agreement to sell the private jet it previously purchased from its Chairman, Yang Zhihui.
According to a Monday filing, Landing will sell the 19-seat Bombardier Global 6000 aircraft to a company called Tunbridge Limited for US$18.9 million, representing a loss on carrying value of HK$34 million (US$4.4 million).
The jet was originally purchased by Yang for US$53 million in 2013 before he sold it to Landing four years later where it has been used for transporting VIP customers to South Korea.
After China issued an order in 2017 preventing tour groups from selling package tours for residents to visit South Korea, Yang told media at the time that, “Free travelers are generally not affected, and they have higher spending power,” making the jet a valuable asset in bringing high rollers to Jeju.
However, COVID-19 appears to have quashed even those efforts, with Landing stating on Monday that, following the sale of the Aircraft, “the obligations of the Group under the loan facility of the Aircraft shall cease and therefore the Group will no longer be required to bear the relevant loan repayment and financial cost and in addition, the liabilities of the Group may be reduced.
“The directors are of the view that the transaction will improve the financial position of the Group. Having considered the current market condition and the funding needs of the Group, the directors believe that the transaction represents a good opportunity for the Company to sell the aircraft at a reasonable price.”
Landing issued a profit warning last week in which it revealed a 25% fall in revenue in 1H20, with a slight decrease in net loss expected from the loss of HK$835.6 million recorded in 1H19.