Korea-based e-commerce company WeMakePrice is set to enter bankruptcy proceedings. It comes a little over a year after it filed for rehabilitation with the court on Jul. 29 last year. The Seoul Bankruptcy Court on the 9th decided to discontinue rehabilitation, judging that there was no company to acquire WeMakePrice.
On this day, the Seoul Bankruptcy Court announced that it decided to discontinue rehabilitation for WeMakePrice. Discontinuance of rehabilitation means it will no longer proceed with rehabilitation and will move to bankruptcy proceedings.
An official at the bankruptcy court said, "With WeMakePrice unable to find an acquirer and the liquidation value of the corporations exceeding the going-concern value (continuing value), the court decided to discontinue rehabilitation."
WeMakePrice applied for corporate rehabilitation with the court on Jul. 29 last year due to a 1.3 trillion won unsettled-payment crisis, and the court decided to commence rehabilitation in September of the same year.
Since then, WeMakePrice has pursued mergers and acquisitions (M&A) with the court's approval. Recently, WeMakePrice held acquisition talks with Genesis BBQ Group, a fried-chicken franchise, but they ultimately fell through. After WeMakePrice failed to find a new acquirer by the deadline for approval of the rehabilitation plan on this day (the 9th), the court decided to discontinue the proceedings.
If no immediate appeals objecting to the court's decision are filed within 14 days, the decision to discontinue rehabilitation will be finalized. In that case, the bench may declare bankruptcy ex officio.
However, if the first rehabilitation proceeding is discontinued, WeMakePrice may use a "re-application" to apply for rehabilitation again. If the court grants the re-application, rehabilitation proceedings will commence again. If it is dismissed, the company will again move toward bankruptcy.
Meanwhile, TMON, which underwent rehabilitation proceedings alongside WeMakePrice, received a court decision in August to conclude its rehabilitation. This came as Oasis Market, a fresh-food dawn-delivery specialist company, was finalized as the acquirer.
Earlier, Oasis was selected as the final preferred bidder for TMON in April, but at the stakeholders' meeting held in June, the rehabilitation plan for Oasis's acquisition of TMON was voted down. However, when the court issued a cramdown approval of the rehabilitation plan on the 23rd of the same month, Oasis was confirmed as the final acquirer.