Bukwang Pharmaceutical Confirmed as Final Acquirer of Union Korea Pharm

Bukwang Pharmaceutical announced on the 13th that the court has approved the rehabilitation plan for Union Korea Pharm.

According to the rehabilitation plan, Bukwang Pharmaceutical has been selected as the final preferred bidder. The acquisition funds will be used as resources for the rehabilitation process. Consequently, Bukwang Pharmaceutical will inject 30 billion won through a third-party allotment paid-in capital increase. The company plans to acquire shares in Union Korea Pharm on the 28th. The number of shares to be acquired is 60 million, representing a 75.14% ownership stake.

The 14th Division of the Seoul Bankruptcy Court for Rehabilitation (Presiding Judge Choi Mi-bok) approved the rehabilitation plan for Union Korea Pharm on the previous day (the 12th). The court stated, "The rehabilitation plan was approved at the meeting of interested parties convened on May 12 for the resolution of the plan, and it was also found to meet the requirements set forth in the Debtor Rehabilitation and Bankruptcy Act."

Earlier, at 4 p.m. on May 12, a meeting of interested parties was held at the No. 1 court of the Seoul Bankruptcy Court, targeting rehabilitation creditors and shareholders, among others. The purpose of the meeting was to review and resolve the rehabilitation plan and to examine supplementary reports on rehabilitation claims.

The majority of secured rehabilitation claims will be settled in cash. General rehabilitation claims will be divided, with 67.6% to be converted into equity and 32.3% to be settled in cash. Most post-commencement interest will be exempted, and the rights attached to existing convertible bonds (CBs) and bonds with warrants (BWs) will be extinguished as of the approval date. In addition, the rehabilitation plan calls for a 3-to-1 reverse stock split, targeting both existing and new shares, together with the conversion of rehabilitation claims into equity.

A Bukwang Pharmaceutical representative stated, "With the overwhelming approval rate leading to this court authorization, Bukwang Pharmaceutical will proceed to acquire Union Korea Pharm. Going forward, we will follow the schedule as outlined in the approved rehabilitation plan. All debts will be settled under the plan before the acquisition, and after the acquisition, we will strive to turn Union Korea Pharm back to profitability."