Bukwang Pharmaceutical said on the 13th that it has been confirmed as the final acquirer of UNION KOREA PHARM.
The Rehabilitation Division 14 of the Seoul Bankruptcy Court (Presiding Judge Choi Mi-bok) approved the rehabilitation plan for UNION KOREA PHARM the previous day. The court said, "The rehabilitation plan passed at the stakeholders' meeting, and the requirements under the relevant law were also met."
With the approval of this rehabilitation plan, Bukwang Pharmaceutical will secure the status of the largest shareholder of UNION KOREA PHARM.
The acquisition price will be injected into the rehabilitation process, and the company plans to invest about 30 billion won through a third-party allotment paid-in capital increase.
Bukwang Pharmaceutical plans to complete the equity acquisition on the 28th, and its equity stake after the acquisition will be 75.14%.
At the stakeholders' meeting held on the 12th, interested parties, including rehabilitation creditors and shareholders, reviewed and resolved the rehabilitation plan. Under the plan, most rehabilitation secured claims will be repaid in cash, while 67.6% of rehabilitation claims will be converted into equity and 32.3% will be repaid in cash. Most interest accrued after commencement will be waived. The rights attached to existing convertible bonds (CB) and bonds with warrants (BW) will be extinguished at the time of approval. In addition, a capital reduction will proceed through a 3-to-1 reverse stock split applied to existing and new shares.
A Bukwang Pharmaceutical official said, "With the rehabilitation plan approved by an overwhelming majority, the acquisition of UNION KOREA PHARM has been finalized," adding, "As we will acquire the company with all liabilities settled under the rehabilitation process, we will focus on turning to profit going forward."