Wemakeprice Fails to Find Buyer, Rehabilitation Proceedings Terminated... Bankruptcy Likely

TMON Acquired by Oasis, but No Buyer Found for Wemakeprice
Seoul Bankruptcy Court Terminates Proceedings on September 9

The Rehabilitation Division 3 of the Seoul Bankruptcy Court, presided over by Chief Judge Jung Junyoung, decided on September 9 to terminate the rehabilitation proceedings for Wemakeprice. If no immediate appeals or similar motions are filed within 14 days, the termination decision will be finalized.

Previously, both TMON and Wemakeprice entered corporate rehabilitation procedures after a large-scale unsettled payment and refund crisis occurred at the end of July last year. Since then, both companies have sought to find new owners through pre-approval mergers and acquisitions before the rehabilitation plans were approved. TMON ended its rehabilitation proceedings on August 22 after Oasis, a company specializing in early-morning delivery, was selected as the acquirer. However, Wemakeprice has faced difficulties in finding a buyer.

The corporate rehabilitation procedure is a system in which a company facing a management crisis is revived under court supervision if the value of maintaining the company (going-concern value) is deemed greater than the value of liquidation (liquidation value).

If a company is unable to carry out the rehabilitation plan under the corporate rehabilitation procedure and the process is terminated, bankruptcy is virtually the only option left for the debtor company. Although it is possible to reapply for rehabilitation after the termination decision, such requests are rarely accepted unless there are significant changes in circumstances.