UNION KOREA PHARM, acquired by Bukwang Pharmaceutical(003000), has applied to graduate from court receivership (rehabilitation proceedings). It comes 11 months after entering rehabilitation for management normalization. UNION KOREA PHARM said it plans to accelerate procedures to end rehabilitation and focus on producing antibiotics.
On the 14th, according to the pharmaceutical industry, UNION KOREA PHARM recently submitted an application to conclude rehabilitation proceedings to the 14th Division for Rehabilitation of the Seoul Bankruptcy Court. If the court accepts it, corporations can end court receivership and return to normal.
UNION KOREA PHARM is a company that produces antibiotics and injectables, with a factory in Wonju, Gangwon. UNION KOREA PHARM applied for rehabilitation in Sep. last year due to worsening management. In the process, Bukwang Pharmaceutical acquired UNION KOREA PHARM for 30 billion won and repaid debt with the acquisition funds. Creditors also agreed to this rehabilitation plan.
A Bukwang Pharmaceutical official said, "Most of the debt has been repaid, excluding some unconfirmed claims of 76 million won." UNION KOREA PHARM's total equity last year recorded a negative 23.1 billion won, falling into capital impairment with liabilities exceeding assets. The company said its liability ratio has now improved to the 40% range.