Tmonf, Due Diligence for New Investment Attraction... Tmon Prepares to Resume Sales

Plan to Secure Letters of Intent and Investment Commitment by the End of This Month
Card Companies Must Lift Payment Blocks for Normal Operation

Timon, which has entered corporate rehabilitation procedures, has begun due diligence work to attract new investors. The plan is to receive new investments and get the company back on a normal track. Timon is also expected to resume sales soon.

According to industry sources on the 20th, a domestic accounting firm has deployed dozens of personnel since the 16th to conduct due diligence on Timon and Wemakeprice. This is necessary to accurately assess the financial status in order to attract new investments.

Sellers and consumers affected by Tmon and Wemakeprice (Timap) are holding a black umbrella rally in front of the Tmon office in Gangnam-gu, Seoul on the 13th. [Image source=Yonhap News]

The current financial due diligence is being conducted at a third-party location. The existing offices of Timon and Wemakeprice are closed. Timon and Wemakeprice have been handling these tasks through Qoo10 Technology, a Qoo10 affiliate, without their own internal finance departments.

Previously, Timon and Wemakeprice submitted a self-rescue plan to the Seoul Bankruptcy Court that includes receiving new investments through restructuring funds or private equity funds, repaying debts to a significant number of creditors, restoring the company to a normal track, and reselling within three years.

Timon and Wemakeprice believe that an investment of approximately 100 billion KRW each is necessary for the companies to normalize. To this end, they have started due diligence to secure Letters of Intent (LOI) or Letters of Commitment (LOC) by the end of this month.

Additionally, Timon has begun movements to resume sales. This is based on the judgment that the business must be operational for actual investments to take place. To this end, an escrow system, where a third party such as a bank holds the payment and settles it upon payment confirmation, has been integrated into the platform. Timon explained that once transactions resume, payments will be settled within three days after product shipment, and that they recently tested the escrow system.

However, since credit card companies have blocked payments for Timon and Wemakeprice since the 24th of last month, it is currently difficult to buy and sell products immediately.

Ryu Kwang-jin, CEO of Timon, said, "To compensate for damages, it is urgent to resume Timon transactions, and several small and medium-sized sellers have contacted us saying they will sell products once the mobile app and site are reactivated. If only the credit card companies cooperate, we can resume transactions as soon as tomorrow."

Meanwhile, the management of Timon and Wemakeprice and the creditors attended the first rehabilitation procedure consultation meeting held at the Seoul Bankruptcy Court on the 13th to discuss the self-rescue plan previously submitted by Timon and Wemakeprice. The Seoul Bankruptcy Court Rehabilitation Division 2 plans to hold the second rehabilitation procedure consultation meeting on the 30th after giving stakeholders about two weeks to deliberate.

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