ATOM Converts USD 9 Million into Equity in Vietnamese Subsidiary... "Improving Financial Structure and Strengthening Production Competitiveness"

KOSDAQ-listed ATOM will undertake an additional debt-to-equity conversion for its Vietnamese manufacturing subsidiary in order to enhance its financial soundness and strengthen global production competitiveness.

ATOM announced on July 20 that its board of directors had resolved on July 16 to convert USD 5 million (approximately KRW 7.444 billion) of loans provided to its Vietnamese subsidiary, ATUM VINA CO., LTD., into capital through a debt-to-equity swap.

This move follows a previous decision to conduct a USD 4 million (approximately KRW 5.74 billion) debt-to-equity conversion scheduled for December 31 of last year. As a result, the total amount of debt-to-equity swaps conducted by ATOM to improve the capital structure of its Vietnamese subsidiary has now increased to USD 9 million (about KRW 12 billion).

The debt-to-equity conversion will be carried out by converting the funds lent by ATOM to its Vietnamese subsidiary into capital through a contribution-in-kind method. This will enable the local subsidiary to reduce its debt and interest obligations, while expanding its capital base to improve its financial structure and enhance financial soundness.

The company stated that, through this measure, it expects to resolve capital erosion, lower the debt ratio, and secure financial stability, ultimately establishing a solid foundation for sustainable growth.

The Vietnamese subsidiary serves as ATOM's key global production base for charger transformers. Through this debt-to-equity conversion, ATOM plans to boost the local entity's creditworthiness and strengthen the stability of its production operations, thereby further enhancing its ability to serve global clients and improving production efficiency.

An ATOM representative said, "This debt-to-equity conversion is a strategic decision aimed at fundamentally improving the financial structure and reducing the debt burden of our Vietnamese entity. With our improved financial stability, we will accelerate the operational efficiency of the local subsidiary, reinforce our core business competitiveness in the global market, and enhance corporate value."

This debt-to-equity swap is significant as it represents a strategic investment by ATOM to improve the financial stability of its core Vietnamese production subsidiary, thereby strengthening production competitiveness and its global business foundation.

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