Mesh Korea "Overcoming Crisis Through External Investment Attraction via ARS Rehabilitation Proceedings"

Application for Voluntary Restructuring Support Program at Seoul Rehabilitation Court

[Asia Economy Reporter Kim Cheol-hyun] Mesh Korea (CEO Yoo Jung-beom) announced on the 28th that it has applied for the Seoul Bankruptcy Court's Autonomous Restructuring Support (ARS) program. The ARS program is a type of corporate rehabilitation procedure that, under the court's preservation order and comprehensive injunction, suspends the commencement of rehabilitation proceedings for up to three months, allowing creditors and debtors to negotiate and withdraw the rehabilitation application if an agreement is reached.

Mesh Korea plans to attract investment from sound external investors during the three-month period when debt repayment is prohibited, repay existing debts, and withdraw the rehabilitation application to overcome the current financial crisis. The company explained that due diligence by external investors will begin this week.

However, it is uncertain whether Mesh Korea's plan will proceed as intended. This application is known to have been decided by CEO Yoo Jung-beom without consultation with the board of directors. Industry insiders view that CEO Yoo took this step to prevent a sale or court-led management by the creditors. The creditor group OK Capital has stated its intention to hold a board meeting to pursue the sale of management rights shares and the filing of corporate rehabilitation proceedings.

In response, Mesh Korea claimed, "The so-called P-Plan rehabilitation, reportedly led by some creditors including OK Capital, unlike the ARS program, presupposes the commencement of Mesh Korea's rehabilitation proceedings and infringes on the rights of creditors and shareholders."

CEO Yoo said, "We negotiated a repayment plan with OK Capital based on securing funds such as overseas investment, but OK Capital showed plans and actions beyond those of a simple creditor, including management rights and share sales, pressuring the company and shareholders in a manner akin to a hostile M&A, so we could not accept OK Capital's claims. Mesh Korea plans to focus all efforts on smooth communication and successful investment attraction to maximize the protection of the interests of creditors, shareholders, employees, and business partners."

This content was produced with the assistance of AI translation services.