'Corporate Rehabilitation' Balaan Signs Stalking Horse Agreement with AAK... Final Acquirer to Be Confirmed in September

AAK, Founded in 2014, Invests in Hotels and Blockchain
Public Sale Notice Expected at the End of This Month
Final Bid Deadline Set for September 19

Balaan, a luxury goods platform currently undergoing corporate rehabilitation proceedings, announced on August 18 that it has signed a stalking horse agreement with Asia Advisors Korea (AAK), a family office investment firm, thereby initiating the merger and acquisition (M&A) process.

AAK, established in 2014, is an investment company that has executed more than 160 investments to date. It maintains a diverse portfolio spanning real estate, corporate investments, and new technologies. Recently, AAK has been diversifying its investments into sectors such as hotels and residences, entertainment, and blockchain.

A stalking horse is a method in which a buyer is pre-designated before a company is put up for sale, and then a public competitive bidding process is held to seek out other potential buyers who may offer better terms. The terms proposed by AAK serve as the baseline for the acquisition decision; if no other bidder offers more favorable conditions, the contract will be finalized with AAK.

Previously, upon the commencement of its rehabilitation process, Balaan secured DIP (Debtor in Possession) financing from AAK. DIP funding refers to operating capital provided by external investors with court approval during rehabilitation proceedings, which is granted repayment priority over existing creditors. Through this financing, Balaan has been able to maintain service operations and establish a foundation for a smooth acquisition process.

The sale process will proceed as follows: a public sale notice will be issued at the end of August; the deadline for submitting a Letter of Intent (LOI) and a Non-Disclosure Agreement is September 5; due diligence will take place from September 8 to 19; and the final bid deadline is September 19. The final preferred bidder is expected to be confirmed as early as September.

A Balaan representative stated, "This stalking horse agreement is not merely a part of the rehabilitation process, but a turning point for early normalization and sustainable growth," adding, "We aim to secure both business stability and momentum for global expansion."

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