The court has decided to commence rehabilitation proceedings for Ipark Young Chang, a domestic musical instrument manufacturing and sales corporations.
The 13th Division of the Seoul Bankruptcy Court (Presiding Judge Kang Hyeon-gu, Director General) said on the 18th that it decided to commence rehabilitation proceedings for Ipark Young Chang.
The court set the period from today to June 8 as the window for submitting the lists of rehabilitation creditors, rehabilitation collateral right holders, and shareholders. Rehabilitation claims, rehabilitation collateral rights, and shares must be filed from June 9 to 22. Related examinations will be conducted by July 6.
The deadline for submitting Ipark Young Chang's rehabilitation plan is Aug. 31. After that, the court will convene a stakeholders' meeting and decide whether to approve the rehabilitation plan. At that time, at least three-fourths of the rehabilitation collateral right holders, two-thirds of the rehabilitation creditors, and one-half of the shareholders must consent to the plan.
Ipark Young Chang applied to the court for corporate rehabilitation proceedings on Apr. 16. It was the result of failing to overcome poor performance amid a global downturn in the musical instrument market. In particular, after the amendment to the Commercial Act expanded directors' duty of loyalty, support for affiliates was halted, which reportedly also had an impact.
An Ipark Young Chang representative said, "We made efforts on multiple fronts, including workforce and expense efficiency, logistics cost reductions, and a revamp of the product lineup, but it was difficult to withstand the accumulated losses."
Ipark Young Chang was founded in 1956 as Sinhyang Piano and began exporting instruments under the Young Chang brand in 1971. In 1990, it acquired the U.S. electronic musical instrument brand Kurzweil and entered the electronic instrument market. It was acquired by HDC Holdings Co. Group in 2006.