Bukwang Pharmaceutical's subsidiary, Korea Union Pharmaceutical, has successfully exited court protection. This follows Bukwang's investment of 30 billion won, which allowed for the repayment of most rehabilitation claims just three months ago.
On September 1, Bukwang Pharmaceutical announced that the Seoul Bankruptcy Court had decided to conclude the rehabilitation process for Korea Union Pharmaceutical on August 31. The company had filed for rehabilitation proceedings in September of last year due to management difficulties and received the court's approval the same month. It has now completed the court protection process in about a year.
The conclusion of the rehabilitation process is determined when the majority of debt repayments and rights changes outlined in the rehabilitation plan have been fulfilled, indicating that court oversight is no longer necessary.
Korea Union Pharmaceutical repaid most of the 29.2 billion won in claims due this year, excluding some unconfirmed claims. The remaining unpaid amount is 76 million won. The company submitted a request to conclude the rehabilitation process to the Seoul Bankruptcy Court on August 14, which was accepted.
The foundation for this normalization was Bukwang Pharmaceutical's financial support. On May 27, Bukwang invested 30 billion won to acquire new shares in Korea Union Pharmaceutical, becoming the largest shareholder. This acquisition funding was utilized for debt repayment as part of the rehabilitation plan.
Bukwang stated that the conclusion of the rehabilitation process has significantly alleviated the financial uncertainties surrounding Korea Union Pharmaceutical. The company noted, "After the acquisition, we have repaid most of the debts according to the rehabilitation plan," adding that the previously capital-deficient financial structure has improved to a debt ratio of around 40%.
Furthermore, it mentioned, "All past unpaid trade receivables, loans, and convertible bonds have been settled. Currently, only some debts related to normal operations, such as trade payables and return provisions arising during the management normalization process, remain. Excluding these, the actual debt ratio is about 15%."
Bukwang is already seeing the benefits of the acquisition. In June, it shipped the digestive enzyme product 'Complex Pajaim Double Tablets,' which is produced by Korea Union Pharmaceutical. Starting this month, it plans to produce and ship general over-the-counter medications 'Hard Chewable Tablets' and 'Hard Chewable Easy Tablets' at Korea Union Pharmaceutical.
On September 1, Bukwang Pharmaceutical announced that the Seoul Bankruptcy Court had decided to conclude the rehabilitation process for Korea Union Pharmaceutical on August 31. The company had filed for rehabilitation proceedings in September of last year due to management difficulties and received the court's approval the same month. It has now completed the court protection process in about a year.
The conclusion of the rehabilitation process is determined when the majority of debt repayments and rights changes outlined in the rehabilitation plan have been fulfilled, indicating that court oversight is no longer necessary.
Korea Union Pharmaceutical repaid most of the 29.2 billion won in claims due this year, excluding some unconfirmed claims. The remaining unpaid amount is 76 million won. The company submitted a request to conclude the rehabilitation process to the Seoul Bankruptcy Court on August 14, which was accepted.
The foundation for this normalization was Bukwang Pharmaceutical's financial support. On May 27, Bukwang invested 30 billion won to acquire new shares in Korea Union Pharmaceutical, becoming the largest shareholder. This acquisition funding was utilized for debt repayment as part of the rehabilitation plan.
Bukwang stated that the conclusion of the rehabilitation process has significantly alleviated the financial uncertainties surrounding Korea Union Pharmaceutical. The company noted, "After the acquisition, we have repaid most of the debts according to the rehabilitation plan," adding that the previously capital-deficient financial structure has improved to a debt ratio of around 40%.
Furthermore, it mentioned, "All past unpaid trade receivables, loans, and convertible bonds have been settled. Currently, only some debts related to normal operations, such as trade payables and return provisions arising during the management normalization process, remain. Excluding these, the actual debt ratio is about 15%."
Bukwang is already seeing the benefits of the acquisition. In June, it shipped the digestive enzyme product 'Complex Pajaim Double Tablets,' which is produced by Korea Union Pharmaceutical. Starting this month, it plans to produce and ship general over-the-counter medications 'Hard Chewable Tablets' and 'Hard Chewable Easy Tablets' at Korea Union Pharmaceutical.
* This article has been translated by AI.
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