Bukwang Pharmaceutical Concludes Rehabilitation Proceedings for Subsidiary Korea Union Pharmaceutical... Accelerating Business Normalization

Courtesy of Bukwang Pharmaceutical [Financial News] The court-ordered rehabilitation proceedings for Korea Union Pharmaceutical, a subsidiary of Bukwang Pharmaceutical, have officially concluded. Since becoming the largest shareholder, Bukwang Pharmaceutical has repaid most of the rehabilitation debts, resolving financial uncertainties and accelerating the normalization of management.
Bukwang Pharmaceutical announced on the 1st that the Seoul Rehabilitation Court decided on May 31 to terminate the rehabilitation proceedings for Korea Union Pharmaceutical in accordance with the Debtor Rehabilitation and Bankruptcy Act. Previously, Bukwang Pharmaceutical became the largest shareholder of Korea Union Pharmaceutical on May 27 by paying a total of 30 billion won for the subscription of new shares.
Korea Union Pharmaceutical has been proceeding with changes to rights and the repayment of rehabilitation claims in accordance with the rehabilitation plan. 201 billion won, and most debts have been repaid, excluding some unconfirmed claims.
The remaining outstanding balance is approximately 76 million won. Consequently, Korea Union Pharmaceutical filed for the termination of rehabilitation proceedings with the Seoul Rehabilitation Court on the 14th of last month, and the proceedings were concluded as the court accepted the application.
Bukwang Pharmaceutical explained that Korea Union Pharmaceutical's financial structure has significantly improved following the conclusion of the rehabilitation proceedings. A Bukwang Pharmaceutical official stated, "Most of the debt was repaid in accordance with the rehabilitation plan following the acquisition," adding, "Korea Union Pharmaceutical's debt ratio has improved to the 40% range since the conclusion of the rehabilitation proceedings.
" The official further explained, "Past unpaid trade receivables, borrowings, and bonds with warrants (BW) have all been repaid," and "Currently, only some debts arising from normal business operations, such as accounts payable and provisions for returns, remain, effectively bringing the debt ratio to around 15%. " Bukwang Pharmaceutical also plans to expand business synergies with Korea Union Pharmaceutical.
The company has already outsourced pharmaceutical production and shipped 'Complex Pazyme Double Tablet' (ingredient name: Pancreatin) last June.
Additionally, the over-the-counter thyroid and endocrine medications 'Hard Cal Chewable Tablet' and 'Hard Cal Chewable Easy Tablet' are being produced by Korea Union Pharmaceutical and are scheduled to be shipped starting this month.
A Bukwang Pharmaceutical official stated, "We have established a foundation for sustainable growth based on stable business operations and management normalization," adding, "We will expand sales and manufacturing synergies between the two companies to drive revenue growth and a turnaround to profitability for Korea Union Pharmaceutical.
" The official further added, "Once Korea Union Pharmaceutical's performance is reflected in Bukwang Pharmaceutical's results, we expect an expansion in revenue scale, as well as the resolution of financial uncertainties and improved profitability.
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[email protected] Jeong Sang-hee Reporter