2020.07.15(수)

전체기사

Woongjin Energy to submit reorganization plan Korean solar firm delisted from local bourse

Translated by Ryu Ho-joung 공개 2020-06-03 08:00:07

이 기사는 2020년 06월 03일 08:00 더벨 유료페이지에 표출된 기사입니다.

South Korea’s Woongjin Energy is set to submit its new reorganization plan soon to the Seoul Bankruptcy Court after its failed attempt to sell itself earlier this year, sources familiar with the situation said.

The photovoltaic business arm of Woongjin Group currently has until June 3 to file its reorganization plan. As the bankruptcy court approved the extension of the deadline four times already, the chances of a further delay are pretty slim, the sources said.

The company, which filed for bankruptcy about a year ago, originally sought to sell itself to reorganize its operations. Several foreign potential investors showed interest but ultimately none made an offer. According to an inspection report submitted to the court last fall, the company’s liquidation value was estimated at about 80 billion won ($65 million).

As its sale attempt flopped, the debtor is expected to propose a repayment schedule for its creditors based on the operating cash flow forecast for the next 10-year period as part of its reorganization plan. Woongjin Energy’s debt totaled 195.5 billion won, although the amount can be reduced after a debt-for-equity swap upon approval by the court.

“Once Woongjin Energy’s reorganization plan is confirmed, a group of creditors will become the largest shareholder in the company,” an industry insider said.

Woongjin Energy was delisted from the local stock exchange on June 1 after its financial statements were given a disclaimer of audit opinion for two consecutive years. There are chances that a controlling stake in the company may be put up on the market again if its creditors seek to collect their debt through a sale.

Woongjin Energy is considered the starting point of Woongjin Group’s liquidity crunch. It is the country's last remaining manufacturer of ingots and wafers for solar cells. The company recorded revenue of 165.8 billion won and operating loss of 56 billion won for 2018 and a deteriorated performance in 2019 with 41.8 billion won in revenue and 59.3 billion won in operating loss.

(Reporting by Ik-hwan Choi)
< 저작권자 ⓒ 자본시장 미디어 'thebell', 무단 전재 및 재배포 금지 >
(주)더벨
주소서울특별시 중구 무교로 6 (을지로 1가) 금세기빌딩 5층대표/발행인성화용편집인이진우등록번호서울아00483등록년월일2007.12.27 / 제호 : 더벨(thebell)
발행년월일2007.12.30청소년보호관리책임자이현중
문의TEL : 02-724-4100 / FAX : 02-724-4109서비스 문의 및 PC 초기화TEL : 02-724-4103기술 및 장애문의TEL : 02-724-4159

더벨의 모든 기사(콘텐트)는 저작권법의 보호를 받으며, 무단 전재 및 복사와 배포 등을 금지합니다.

copyright ⓒ thebell all rights reserved.