STX Corporation Wins Approval for Rehabilitation Plan, Begins Management Normalization

[Financial News] General trading company STX Corporation has received approval for its rehabilitation plan and is beginning efforts to normalize management.
STX Corporation said on the 16th that it had received approval for its rehabilitation plan from the Seoul Bankruptcy Court.
At a creditors’ meeting held that day, 100% of rehabilitation-secured creditors and 91.5% of rehabilitation creditors, based on the total amount of voting rights, approved the rehabilitation plan. The consent thresholds required to pass the plan were at least 75% among rehabilitation-secured creditors and at least 66.7% among rehabilitation creditors. The actual approval rates therefore significantly exceeded the statutory requirements in both categories.
The approved rehabilitation plan calls for the repayment of rehabilitation-secured claims and rehabilitation claims using Bumhan Industries’ acquisition payment as a major source of funds, along with the conversion of some rehabilitation claims into equity.
STX Corporation plans to improve its financial structure by carrying out procedures under the rehabilitation plan, including the repayment of claims and changes to its capital structure.
Before the plan was approved, STX Corporation pursued a merger and acquisition (M&A) process and selected Bumhan Industries as the final acquirer through an open competitive bidding process. It subsequently signed an amended investment agreement with Bumhan Industries, which paid the full acquisition amount of KRW 68 billion before the rehabilitation plan was approved.
Following the approval, STX Corporation plans to proceed with the acquisition of Bumhan Industries in stages while expanding its business activities and reorganizing its core trading operations. The company will strengthen business relationships with existing clients and actively seek new business opportunities, focusing its resources on restoring the competitiveness of its core business.
An STX Corporation official said, "We thank all stakeholders, including the creditors who joined together in support of the rehabilitation plan, as well as the shareholders and business partners who trusted the company and waited for us throughout the rehabilitation proceedings." The official added, "We will faithfully implement the rehabilitation plan and focus even more on our core business to repay the trust placed in the company."

[email protected] So-hyun Park Reporter