[Alpha Biz= Paul Lee] Bukwang Pharmaceutical has been confirmed as the final acquirer of Korea Union Pharmaceutical after a South Korean court approved the company’s rehabilitation plan, paving the way for a full-scale financial restructuring and normalization.

According to Bukwang Pharmaceutical on May 13, the 14th Division of the Rehabilitation Court at the Seoul Bankruptcy Court approved the rehabilitation plan for Korea Union Pharmaceutical on May 12.

The approval followed overwhelming support from stakeholders, including rehabilitation creditors, at a creditors’ meeting held at the court on the same day.

Under the approved plan, Bukwang Pharmaceutical will invest a total of KRW 30 billion through a third-party allotment capital increase. The company is scheduled to acquire 60 million shares of Korea Union Pharmaceutical on May 28, securing a final ownership stake of 75.14%.

The rehabilitation plan includes robust debt restructuring measures aimed at enhancing corporate value. Most secured rehabilitation claims will be settled in cash, while unsecured claims will be resolved through a combination of 67.6% debt-to-equity conversion and 32.3% cash repayment.

In addition, interest accrued after the commencement of rehabilitation proceedings will be largely waived. Rights associated with previously issued convertible bonds (CBs) and bonds with warrants (BWs) will be extinguished as of the approval date.

A 3-for-1 reverse stock split covering both existing and newly issued shares will also be implemented as part of the restructuring process.

Bukwang Pharmaceutical stated that the acquisition is expected to fundamentally improve Korea Union Pharmaceutical’s financial structure. Upon completion of the repayment process under the rehabilitation plan, the company will effectively operate with minimal debt and be fully integrated under Bukwang Pharmaceutical’s management.

 

 

[ⓒ 알파경제. 무단전재-재배포 금지]