Timon and Wemakeprice "File for Rehabilitation to Minimize Seller and Consumer Damage"

Tmon and Wemakeprice explained on the 29th that their filing for corporate rehabilitation was a measure to seek business normalization through the rehabilitation system and to prevent harm to sellers and consumers. They also stated that they are prepared to establish and implement drastic self-help measures during this process. Tmon and Wemakeprice announced that they have applied for the new Autonomous Restructuring Support program (ARS program) operated within the rehabilitation system by the court, and will actively consider whether to pursue funding through restructuring funds rather than undergoing compulsory rehabilitation procedures.

On the 29th, as the 'Unsettled Sales Payment Incident' of Wemakeprice and Tmon continues, citizens are passing by in front of the Tmon building in Gangnam-gu, Seoul. Photo by Jo Yongjun jun21@

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On this day, Tmon and Wemakeprice said that due to the recent settlement delay incident, "the suspension of transactions and the departure of purchasing and selling members accelerated, and as a result, our cash flow also deteriorated rapidly," adding, "there are limits to overcoming the cash flow deterioration caused by transaction suspension and member departure, and as a measure to prevent the current vicious cycle and minimize damage to selling members and consumers, we have been forced to file for the commencement of rehabilitation proceedings."

The rehabilitation procedure is a system designed to prevent damage to numerous creditors who would not be able to properly recover their claims if the debtor corporation were liquidated. According to Tmon and Wemakeprice, it allows the debtor to continue operating the business while managing funds and adjusting debts under the court's supervision and control, ultimately enabling repayment of debts as much as possible even if it takes a long time.

In particular, Tmon and Wemakeprice said they plan to actively review whether it is possible to pursue funding through restructuring funds more proactively by applying for the ARS program, compared to the existing method of immediately initiating compulsory rehabilitation procedures. This program allows the court to defer the commencement of compulsory rehabilitation procedures and first support autonomous negotiations on restructuring between the company and creditors.

Tmon and Wemakeprice emphasized, "The filing for commencement of rehabilitation is intended to bring the best outcome to all parties involved, including consumers and sellers, under the current circumstances, and we will maintain a responsible attitude and devote all corporate capabilities until the issues are resolved."

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