Enhance of undetermined quantity to 213.4 billion received
When bonds are frozen, it takes time to return.
E-commerce corporations Timon and WeMakePrice, which suffered tons of of billions of received in unpaid settlements, filed for company rehabilitation procedures (courtroom proceedings) to the Seoul Chapter Courtroom on the twenty ninth. If rehabilitation procedures are initiated, it’s anticipated that it’ll take a very long time for sellers on each platforms to get better their defaulted funds because the bonds shall be frozen. On today, the Ministry of Justice banned Koo Younger-bae, CEO of Q10, the guardian firm, and Timon and WeMakePrice executives from leaving the nation, and the prosecutors and police additionally began a full-scale investigation. .
Timon and WeMakePrice launched an announcement after making use of for company rehabilitation and stated, “We have now inevitably utilized for rehabilitation as a solution to decrease harm to our retail members and our customers.” The company rehabilitation process is a system through which a 3rd celebration appointed by the courtroom manages all company actions, together with cash, on his behalf. As soon as this process is initiated, the debt is frozen and principal and curiosity funds are stopped. If the corporate can’t get approval from collectors for rehabilitation procedures, it’s attainable to file for chapter, through which case compensation to victims may very well be harder.
Based on the federal government, as of the twenty fifth of this month, the entire quantity of unsustainable cash that the 2 corporations haven’t returned to sellers has reached 213.4 billion received though the settlement date has handed over. The gross sales income from June and July are nonetheless unsustainable quantities, so the harm may very well be a lot higher. First, the federal government determined to acquire liquidity assist value 560 billion to stop a sequence of bankruptcies amongst small enterprise homeowners.
On the similar time, the Seoul Central District Prosecutors Workplace established a particular investigation staff of seven prosecutors, based mostly on the primary anti-corruption investigation division, following the route of Chief Prosecutor Lee Received-seok.
“Resolving the state of affairs” Request for ‘rehabilitation’ in half a day… Enterprise: “There is no such thing as a will to compensate”
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Timon-WeMakePrice, apply for bodily rehabilitation … When accepted by the courtroom, measures similar to a debt freeze shall be taken.
Vendor, might not obtain 80% of settlement cost
There’s a suspicion of an try to ‘reduce off the tail’ of the guardian firm… Koo Younger-bae is anticipated to attend the Nationwide Meeting inquiry at the moment.
tears of victims
On the twenty ninth, whereas client nervousness continued because of the delay in Timon and WeMakePrice’s settlement, a sufferer’s declare was posted on the entrance of Timon and WeMakePrice’s headquarters in Gangnam-gu, Seoul. Information 1
As Timon and WeMakePrice, who’re concerned in a dispute over delays in settlement and refunds, submitted an utility for a courtroom waiver (bodily rehabilitation procedures) to the Seoul Rehabilitation Courtroom on the twenty ninth, there are considerations that compensation for victims presently harder. . This occurred half a day after Koo Younger-bae (pictured), CEO of Q10 Group, the guardian firm of the 2 corporations, introduced this morning, “We’ll do our greatest to resolve the state of affairs.” The business is elevating voices of criticism that CEO Koo and the Q10 Group didn’t intend to compensate for the harm from the start.
● Compensation for victims will possible develop into harder
The company rehabilitation process is a system through which a 3rd celebration appointed by the courtroom manages all company actions, together with cash, on his behalf. In case you apply for bodily rehabilitation procedures, you possibly can instantly forestall varied executions similar to arrest, assortment, and public sale based on the situation of preservation and complete courtroom order. On the similar time, the debt is frozen and the cost of principal and curiosity is suspended, so the liquidity generated sooner or later can be utilized to generate working income.
If the courtroom decides that it’s helpful to proceed the enterprise fairly than liquidate it and decides to begin company rehabilitation procedures, the administrator appointed by the courtroom will study the remaining belongings and bodily worth and submit a rehabilitation plan. Accordingly, corporations perform administration actions and debt reimbursement on the similar time, and on this course of, a part of the debt will be cancelled.
No matter whether or not the courtroom accepts the claims of the 2 corporations, many predict that sellers will endure losses. Whereas the company rehabilitation procedures are underway, all monetary and industrial belongings are frozen, so the cash can’t be returned. Kim Gwang-joong, director of Haurim Regulation Agency and a company rehabilitation knowledgeable, stated, “Since Timon and WeMakePrice utilized for rehabilitation in a state of affairs the place they had been unable to generate gross sales usually, beforehand contemplating mergers and acquisitions (M&A). rehabilitation license within the ‘stalking horse’ model),” he stated. The stalking horse methodology is a manner of discovering a purchaser prematurely by a personal deal when promoting an organization after which making a bid open competitor later.
● Wasn’t there any intention to stop Q10 harm from the beginning?
As for CEO Koo, who issued an announcement this morning saying, “We’ll decrease harm to shoppers and stop the unfold of the state of affairs by a fast response,” many say he’s not present a honest want to resolve the matter.
Lee Jeong-hee, a professor of economics at Chung-Ang College, stated, “CEO Koo stated this morning that he would do his finest to safe liquidity for Timon and WeMakePrice and even use his personal funds, however there was nothing particular about it.
Chae Sang-mi, a professor of enterprise administration at Ewha Womans College, additionally stated, “Not one of the measures that CEO Koo talked about this morning are measures that apply to bankrupt corporations.” the reason is that since it’s a damaged firm, its shares are at a discount value and even when it tries to pursue M&A, nobody will purchase the corporate. Whereas Timon and WeMakePrice will get a while to repay their money owed and get a few of their money owed forgiven, considerations are being raised about serial chapter for a lot of sellers who haven’t obtained the excellent funds.
An official within the distribution business stated, “Additionally it is stunning that the guardian firm abruptly begins rehabilitation procedures in a state of affairs the place they aren’t actively attempting to resolve the state of affairs .”
In the meantime, Consultant Koo is anticipated to look on the Nationwide Meeting’s Political Affairs Committee inquiry into upcoming points on the thirtieth. An official from the Nationwide Meeting’s Political Affairs Committee stated, “Consultant Koo, Timon CEO Ryu Gwang-jin, and WeMakePrice CEO Ryu Hwa-hyun have determined to attend the Nationwide Meeting.”
Reporter Lee Min-ah [email protected]
Reporter Kim Ja-hyeon [email protected]
Sejong = Narrator Track Hye-mi [email protected]
Reporter Jeon Joo-young [email protected]
Reporter Jeong Search engine marketing-young [email protected]
2024-07-29 18:00:00
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