I am Lee Yeon says "Performance Planning Business Will Recover After COVID-19"

[Asia Economy Reporter Hyunseok Yoo] IM Eunyeoni issued a statement on the 17th regarding some media reports about corporate insolvency suspicions.

An IM Eunyeoni official said, "The invested performance planning business has suffered due to the impact of the novel coronavirus disease (COVID-19), resulting in a large net loss for the current period," and added, "This is an accounting loss without actual cash outflow and is expected to recover once the COVID-19 situation stabilizes."

In the third quarter, IM Eunyeoni recorded a consolidated net loss of 65 billion KRW. The loss widened due to the write-off of goodwill from its affiliate IM E International and convertible bonds issued by IM E Partners.

IM E International is a performance planning company that hosts Asia tour concerts and has held over 500 concerts for Hallyu stars such as Big Bang, BTS (Bangtan Sonyeondan), and IU. Last year, when there was no COVID-19, it posted an operating profit of 11.7 billion KRW.

This year, due to the difficulty in holding performances caused by COVID-19, the business performance deteriorated, leading to impairment based on an accounting firm's evaluation. IM Eunyeoni wrote off 35.9 billion KRW out of 68.2 billion KRW in overseas performance planning goodwill held by its subsidiary IM E Partners. IM E Partners is the parent company of IM E International.

Meanwhile, IM Eunyeoni's largest shareholder, Eunye Holdings, signed a stock transfer agreement with Infinitytude on the 15th. Once the remaining payment is completed on the 20th of next month, Infinitytude will become the largest shareholder of IM Eunyeoni.

An Infinitytude official stated, "We plan to continue the performance planning business even after the acquisition is completed," and added, "IM E International has a high reputation in the performance planning market, so once the COVID-19 situation is resolved, not only will the business normalize, but we also expect significant growth in performance." They also added, "The recent issue regarding the exercise of put options on all first tranche exchangeable bonds has been resolved."