The Taekwang Industrial–UAMCO consortium, which is pursuing an acquisition of Dongsung Bio Pharm, dismissed the recent controversy over alleged "pressure to cut off transactions with trade creditors" as "groundless speculation."
In a statement on the 12th, the consortium said the claims were "an irresponsible remark that distorts the acquirer's intent," adding, "we will make the protection of all stakeholders and the restoration of trust our top management priority."
Earlier, Brand Refactoring, the largest shareholder of Dongsung Bio Pharm, said, "the custodian gave clients the impression that 'if you do not support the rehabilitation plan, future transactions may become difficult.'"
Regarding the contentious procedure of obtaining consent for the rehabilitation plan, the consortium said it is "a process to restore trust with stakeholders hurt by past lax management and insolvency and to establish an official cooperation base for shared growth going forward."
The intent, it said, is a message of mutual growth that promises financial support and concrete assistance so that existing clients can continue transactions without leaving.
A consortium official said, "the goal is for Dongsung Bio Pharm to be reborn as a company trusted in the market," adding, "after the acquisition, we are fleshing out a mid- to long-term growth roadmap, including sales expansion."
The official added that "we will spare no companywide support so that all stakeholders, including trade creditors, can be protected."
In consultation with the custodian, the consortium submitted to the court a rehabilitation plan that does not carry out a free capital reduction typically borne by shareholders in ordinary corporate rehabilitation procedures. It said it intends to protect shareholder rights by preserving the equity value of existing shareholders.
"The most important asset in normalizing the management of a rehabilitating company is the sales network built over decades and the partnership with trade creditors," the consortium said, stressing that "a transaction cutoff that undermines this cannot be considered, and we will thoroughly guarantee a stable business environment."
The consortium has been proceeding with the acquisition process since signing the investment agreement on the 8th of last month. It plans to unveil a concrete plan for management normalization soon.