'Native OTT' Watcha, Officially Enters Rehabilitation Procedure... Plan to Submit Rehabilitation Plan in January Next Year

[Financial News] Watcha, known as a 'native' online video service (OTT), will undergo court rehabilitation procedures. It officially enters the rehabilitation process with the goal of submitting a rehabilitation plan early next year.
According to the legal community on the 6th, the 17th Division of the Seoul Rehabilitation Court (Chief Judge Lee Young-nam) decided to commence rehabilitation procedures for Watcha on the 4th.
Park Tae-hoon, the representative of Watcha, has been appointed as the administrator, who plays a key role in the rehabilitation process. The court typically designates the debtor's representative as the administrator to expedite the rehabilitation process and maximize management know-how.
Watcha must submit the list of rehabilitation creditors, rehabilitation secured creditors, and shareholders to the court by September 1. Subsequently, from September 2 to 22, reports related to rehabilitation claims, secured claims, and stocks must be submitted. If not reported within this period, the rights will be lost even if the rehabilitation plan is approved.
The investigation of rehabilitation claims and secured claims will be conducted from September 23 to October 22. If the court determines that the value of continuing the business is greater than the liquidation value, it will approve the rehabilitation plan; otherwise, it will make a disapproval decision. The final deadline for submitting the rehabilitation plan is January 7 next year.
Previously, one of Watcha's convertible bond (CB) investors, Enlight Ventures, applied for rehabilitation on the afternoon of the 8th of last month. Corporate rehabilitation can be applied for independently by a creditor holding more than 10% of the total equity capital without consulting the company.  

scottchoi15@fnnews.com Choi Eun-sol Reporter