"To improve its financial structure..." HANJOOHITECH applies for corporate rehabilitation

[Financial News] Semiconductor manufacturing process equipment maker HANJOOHITECH is entering corporate rehabilitation proceedings. With its ability to raise funds weakened by accumulated losses and capital impairment, and a creditor's provisional attachment adding to its difficulties, the company chose court-led debt adjustment and management normalization.
According to industry sources on the 2nd, HANJOOHITECH recently applied to the court for corporate rehabilitation proceedings to improve its financial structure and normalize management.
The immediate cause was a liquidity crunch. A creditor holding a loan claim provisionally attached HANJOOHITECH's main bank account and its receivables from customers, making financial transactions with customers and business partners, as well as normal business operations, difficult.
HANJOOHITECH had also struggled to raise external funds based on its own creditworthiness because of continuing losses and capital impairment. RFTECH, its largest shareholder, resolved approximately KRW 9 billion in debt after acquiring management control and provided operating funds through short-term loans. However, the recent provisional attachment made it difficult for the company to continue normal operations through its existing funding arrangements alone.
Once the rehabilitation proceedings begin, HANJOOHITECH plans to continue operations based on its semiconductor equipment orders and supply plans already secured, while preparing measures to adjust and repay existing debts, including rehabilitation claims. The key to normalization will be reducing its financial burden and converting existing orders into actual sales and cash flow.
A HANJOOHITECH official said, "This application for rehabilitation is not intended to scale down or withdraw from the business," adding, "We will continue our business activities based on the orders we have secured while pursuing improvements to our financial structure and the normalization of management." 
[email protected] Kim Kyung-a Reporter