Winia, a major subsidiary of the Daeyu Winia Group, is facing a diminished chance of recovery.
Located in Gwangju, Winia is a manufacturer of home appliances currently undergoing liquidation by using proceeds from asset sales to repay debts.
Recently, a company interested in acquiring Winia has reportedly decided to withdraw from the deal.
According to Yonhap News on August 4, the Gwangju Bankruptcy Court approved a liquidation recovery plan that allowed H Industry, a home appliance distribution company, to acquire Winia after paying a deposit of 3 billion won.
However, H Industry failed to pay the remaining 30 billion won by the deadline of July 24.
H Industry has informed Winia's court-appointed manager of its decision to withdraw from the acquisition.
A Winia representative stated, "I understand that H Industry has expressed its intention to withdraw without paying the remaining amount. Currently, there are no other companies interested in acquiring Winia, and we are waiting to see whether the court will continue the recovery process or opt for bankruptcy."
Previously, the Gwangju Bankruptcy Court approved a liquidation recovery plan that involved selling Winia's tangible and intangible assets (including factory equipment, land, intellectual property, trademarks, and patents) to H Industry, with the proceeds to be used for debt repayment.
H Industry had promised to rehire over 100 of Winia's approximately 170 employees after the acquisition, but if the deal falls through, job security for the employees will be further jeopardized.
Winia expressed concern, stating, "All 170 employees are currently working both on-site and remotely, and they are not receiving their wages properly. If H Industry's acquisition fails, the hopes of some employees for reemployment will vanish."
As of the date of the recovery application in September 2022, Winia's financial situation included assets of approximately 50 billion won and liabilities of about 530 billion won (including wage claims of 70 billion won).
* This article has been translated by AI.
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