Hyundai Development Company's bid to take over Asiana Airlines has fallen through. 

Korea Development Bank(KDB), the main creditor of the nation’s second-largest airline, held an online press conference on Friday to announce the failed deal.  

KDB Vice President Choi Dae-hyun said Kumho Industrial, the largest shareholder of Asiana, notified HDC of the cancellation of the contract. The creditor said the decision was “regrettable.” 

A consortium led by HDC was chosen as the preferred bidder for debt-ridden Asiana last November and signed a contract the following month to buy it for two-point-five trillion won. However, HDC later called for a fresh round of due diligence on the carrier pointing to notable changes in business conditions due to the COVID-19 outbreak. KDB rejected the request. 

Meanwhile, the government held a ministerial meeting and decided to inject two-point-four trillion won drawn from a backbone industry stabilization fund to provide a lifeline to the airliner.