Hubexel Graduates from Corporate Rehabilitation with Conclusion of Rehabilitation Proceedings

[Asia Economy Reporter Hyunseok Yoo] Hubexel, a KONEX-listed company, announced on the 17th that it officially received notification from the court on the 14th that its rehabilitation procedure has been completed, marking its graduation from the rehabilitation process.

The 14th Division of the Seoul Rehabilitation Court stated in its decision, "The debtor began repayment according to the rehabilitation plan by early fulfilling the repayment obligations for all rehabilitation secured claims and most rehabilitation claims since the approval of the rehabilitation plan on December 17 last year," and "As there is no evidence to recognize any hindrance to the debtor’s performance of the rehabilitation plan, the rehabilitation procedure in this case is hereby concluded pursuant to Article 283, Paragraph 1 of the Debtor Rehabilitation and Bankruptcy Act."

New CEO Park Jung-min said, "It is a rare case even in the Seoul Rehabilitation Court to complete corporate rehabilitation within just six months while proceeding with M&A before approval," adding, "Hubexel strengthened its self-sustainability through restructuring, and the collaboration between newly joined executives including myself and existing employees created synergy."

He continued, "Even in difficult circumstances, it was possible to maintain the KONEX market listing thanks to the cooperation with Shinhan Financial Investment’s IPO team, who willingly took on the role of designated advisor believing in our future. Above all, without the sacrifices and cooperation of shareholders, creditors, and stakeholders, the completion of corporate rehabilitation would have been impossible," he emphasized.

CEO Park stated, "On the 16th, we secured operating funds of 1.78 billion KRW through a third-party allotment capital increase," adding, "Currently, the total capital is 8.37 billion KRW, and the debt ratio has improved to 35%. We will use the secured operating funds to stabilize our main existing business, the spinal implant business, as soon as possible." He also emphasized, "We will accelerate the new business of 3D printing customized implants, which is being jointly developed with Korea University’s industry-academic cooperation."

He further said, "Starting this year, we will integrate the IT business of our major shareholder, T-Life, into Hubexel, beginning with our 100% subsidiary in the U.S., to develop IT systems linked with hospitals and provide services, driving Hubexel toward profitability." He added, "Since the 3D printing customized implant business will generate significant sales next year, we will maximize sales and profits both domestically and in the U.S., and strive to achieve a transfer listing to KOSDAQ within 2022 to minimally repay the sacrifices of our stakeholders."

Additionally, Hubexel’s current CEO, Heo Sung-gyu, will focus on sales. Meanwhile, Park Jung-min, CEO of T-Life and a financial expert who has served as CFO and CEO of multiple listed companies, will take charge as Hubexel’s managing representative. The company will transform into a dual CEO system to create mutual synergy.

A company official explained, "Although stock trading on the KONEX market is scheduled to resume on the 25th, the Korea Securities Depository (the registrar) must complete its administrative procedures for the stock listing to be possible," adding, "Since rehabilitation cases of listed companies are rare and the general shareholders’ meeting season overlaps, the Korea Securities Depository’s work has been continuously delayed, so the resumption may be postponed to next month."