'TIMEF' Self-Rescue Plan Submitted to Court: "Repay Debt Through Investment Attraction and Resell Within 3 Years"

Tmon and Wemakeprice, which caused a large-scale settlement delay crisis, submitted a self-rescue plan to the court on the 12th, stating that they will normalize the companies through external investment attraction.

[Image source=Yonhap News]

According to the legal community, the two companies submitted the self-rescue plan to the Seoul Bankruptcy Court Rehabilitation Division 2 (Presiding Judge An Byung-wook, Judges Kim Ho-chun and Yang Min-ho) in the afternoon.

The plan includes receiving investments through restructuring funds or private equity funds, repaying debts to a significant number of creditors with these funds, restoring the companies to normal operation, and reselling them within three years.

A restructuring fund is a fund that aims to purchase companies facing management crises but with potential, normalize them, and resell them to realize profits.

However, it is reported that the two companies have still not found investors to actually implement the self-rescue plan. Initially, they planned to submit the plan to the court last week, but the submission was delayed due to difficulties in finding investors.

The specific details of the self-rescue plan will be disclosed to the creditor council, the parties involved, at the 'Rehabilitation Procedure Consultation Meeting' held at 3 p.m. on the 13th at the Seoul Bankruptcy Court.

The Rehabilitation Procedure Consultation Meeting will be held privately with the participation of Tmon and Wemakeprice representatives, members of the creditor council, creditors permitted by the court, and government and related agencies.

It is expected that after the consultation meeting, Ryu Kwang-jin, CEO of Tmon, Ryu Hwa-hyun, CEO of Wemakeprice, and Shin Jeong-gwon, chairman of the sellers' emergency committee, will disclose the negotiation details based on the self-rescue plan to the media.

It is still uncertain how the creditors will judge the self-rescue plan.

However, if there is a consensus that the feasibility is low, such as failing to find actual investors, the voluntary restructuring support (ARS) program, which has a deadline of the 2nd of next month, may be terminated early, and the process may return to rehabilitation procedures.

The self-rescue plan submitted on this day did not include the rehabilitation plan for the merger of Tmon and Wemakeprice and the establishment of a shareholder association promoted by Koo Young-bae, CEO of the parent company Qoo10 Group.

Earlier, CEO Koo disclosed his plan on the 9th to establish a new corporation for the merger of Tmon and Wemakeprice and to participate as the largest shareholder by receiving conversion bond (CB) intention letters from sellers for unsettled payments.

Tmon and Wemakeprice do not oppose the Qoo10 Group-level recovery plan but intend to pursue all measures for management normalization, such as attracting investment and selling shares, separately for each company.

Previously, Tmon and Wemakeprice filed for corporate rehabilitation with the court on the 29th of last month.

The court first approved the ARS program to pause the rehabilitation process until the 2nd of next month and seek voluntary solutions with creditors.

Separately, the Seoul Central District Court approved a provisional seizure application for Banpo Xi Apartments in Banpo-dong, Seocho-gu, Seoul, owned 70% by CEO Koo Young-bae.

The approved provisional seizure amounts are approximately 3.67 billion KRW from Samsung Gold Exchange and 300 million KRW from SCM Solution.

On the 29th of last month, the Seoul Central District Court also accepted a provisional seizure application for 100 million KRW filed by Culture Gift Certificates against Qoo10 Technology.

Qoo10 Technology is a technology subsidiary of Qoo10 and functioned as a kind of 'control tower' managing domestic e-commerce platforms such as Tmon and Wemakeprice.

Provisional seizure applications for claims of approximately 697 million KRW and 596 million KRW filed by Coup Marketing and Malltail against Qoo10 Technology were also approved.

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