The online luxury platform BALAAN found a potential acquirer just four months after beginning corporate rehabilitation proceedings.
BALAAN applied to the Seoul Rehabilitation Court to approve its selection of 'Asia Advisors Korea' (AAK) as a conditional acquirer for mergers and acquisitions (M&A) ahead of its rehabilitation plan approval.
AAK is a boutique family office investment firm based in Seoul. It has invested in more than 160 projects in real estate, corporations, and new technology sectors, and it is diversifying its investments into areas such as hotels and residences, entertainment, and blockchain.
The sale of BALAAN is being conducted through a 'stalking horse' method, giving not only AAK but also other interested acquirers the opportunity to participate. A stalking horse is a method of publicly bidding by setting a conditional acquirer in advance.
The sale process will proceed in the following order: ▲ public sale announcement at the end of this month ▲ submission deadline for letters of intent (LOI) and confidentiality agreements on Sept. 5 ▲ due diligence conducted from Sept. 8 to 19 ▲ final bid deadline on Sept. 19. The final acquirer is expected to be confirmed as early as next month.
Earlier, BALAAN secured debtor-in-possession (DIP) financing from AAK at the start of the rehabilitation. DIP funding is operating capital provided by external investors under court approval during the rehabilitation process and gives priority repayment rights over existing creditors. This funding has allowed BALAAN to maintain service operations and secure a foundation for smoothly continuing its acquisition process.
A BALAAN official noted that 'this stalking horse agreement is not just a part of the rehabilitation process but a turning point for early normalization and continued growth,' adding, 'We aim to secure both business stability and global expansion momentum through this.'