Bukwang Pharm: "Subsidiary Union Korea Pharm's Rehabilitation Process Officially Concluded"

Paid 30 Billion Won for New Shares and Completed Debt Repayment

The court rehabilitation process of Union Korea Pharm, a subsidiary of Bukwang Pharm, has been officially concluded.

Bukwang Pharm announced on September 1 that the Seoul Bankruptcy Court had decided to end the rehabilitation procedure of Union Korea Pharm on August 31, in accordance with the Debtor Rehabilitation and Bankruptcy Act.

Previously, on May 27, Bukwang Pharm became the largest shareholder of Union Korea Pharm by paying 30 billion won for the subscription to new shares.

Since then, Union Korea Pharm has implemented changes to rights and repayments of rehabilitation claims in line with the rehabilitation plan. Out of the total 29.21 billion won in claims subject to repayment this year, the company completed full repayment of most of its debt, with only 76 million won in residual unpaid amounts such as undetermined claims remaining. Consequently, on August 14, it applied to the Seoul Bankruptcy Court for the termination of the rehabilitation process.

With the court’s decision to end the rehabilitation process, Union Korea Pharm has resolved financial uncertainties and entered a path of normal management. A Bukwang Pharm official stated, “Most of the debt has been repaid in accordance with the recovery plan after the acquisition,” adding, “After the end of the rehabilitation procedure, Union Korea Pharm’s debt ratio improved significantly, from a state of capital impairment to around 40%.” The company further explained that only normal operating liabilities, such as accounts payable and provisions for product returns, remain for normal business activities, resulting in an effective debt ratio of just about 15%.

The official added, “With this, we have laid the foundation for sustainable growth based on stable business operations and the normalization of management going forward,” and continued, “By maximizing sales and production synergies between the two companies, we will strive for both external growth and helping Union Korea Pharm return to profitability.”

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