HDC Holdings Co. group on the 16th said it "respects management's judgment" regarding Ipark Young Chang's application to commence rehabilitation proceedings.
In a statement released that day, HDC Holdings Co. group said it "respects the judgment to minimize losses to stakeholders and seek the company's normalization through rehabilitation proceedings."
It added, "We will faithfully cooperate as Ipark Young Chang carries out the rehabilitation proceedings in accordance with the lawful procedures set by statute," and said, "In that process, we will strive to fulfill the legal responsibilities we must perform as the major shareholder."
Ipark Young Chang accounts for about 0.4% and 0.2% of HDC Holdings Co.'s consolidation sales and asset, respectively. There is no cross-guarantee. Instrument-related transaction debt is about 4 billion won, and there are no borrowings from financial institutions. HDC Holdings Co. group said, "At this point, Ipark Young Chang's application to commence rehabilitation proceedings will not affect the financial soundness of HDC Holdings Co. and its affiliates."
That day, Ipark Young Chang applied to the Seoul Bankruptcy Court to commence corporations rehabilitation proceedings. Ipark Young Chang had made multifaceted efforts to respond to the downturn and demand decline in the global instrument market, including workforce and expense efficiency, logistics cost reduction, and product lineup reorganization, but it could not overcome the collapse of the acoustic instrument market and simultaneous external headwinds.