Major subsidiaries of DAEYU Group, which is undergoing corporate rehabilitation procedures, have received decisions to terminate the rehabilitation procedures after missing the deadline for submitting rehabilitation plans.
According to a report on the 25th from the Financial Supervisory Service's electronic disclosure system, WINIA disclosed that it received a decision to terminate the rehabilitation procedure from the Seoul Rehabilitation Court. WINIA Electronics (formerly Dongbu Daewoo Electronics) submitted an application for termination of the rehabilitation procedure on the 16th and is awaiting the court's decision.
WINIA noted, "We are reviewing the possibility of a retrial after the appeal period regarding the termination of the rehabilitation procedure." WINIA and WINIA Electronics requested an extension of the deadline to prepare a rehabilitation plan at the court, but it appears that the extension was not granted. Typically, when rehabilitation procedures are terminated, they transition to bankruptcy proceedings; however, the two companies plan to utilize the rehabilitation application system for retrials and continue to apply for the initiation of rehabilitation procedures. They are likely attempting to pursue mergers and acquisitions (M&A) before the approval of the rehabilitation plan.
Earlier, on the 19th, manufacturing, which produces WINIA Electronics products under contract, received a decision to terminate its rehabilitation procedure. Manufacturing is reported to have significant overdue wages and retirement benefits amounting to 35 billion won, and it has determined that rehabilitation through mergers and acquisitions is difficult after a recent sale of the company fell through.
In contrast, WINIA AID, which operated WINIA's service center, will be sold to a consortium of UAMCO and Hyundai Rental Care. Previously, the court designated the consortium as the preferred bidder. The consortium will participate in a third-party allocation of new shares amounting to 24 billion won and purchase corporate bonds worth 21.5 billion won. The meeting for the consideration and resolution of WINIA AID's rehabilitation plan will be held on May 16.