Gwangjin Wintech "Iwell, Rehabilitation Plan Approved... Entering Bio SRF Power Generation Market"

[Asia Economy Reporter Yoo Hyun-seok] Gwangjin Wintec announced on the 29th that its subsidiary Ewell has received court approval for its rehabilitation plan from the Jeju District Court. Prior to the approval on the same day, at the creditors' meeting held for the hearing and resolution of Ewell's rehabilitation plan, 100% of the rehabilitation secured creditors and 77.21% of the rehabilitation creditors agreed to the plan, resulting in its passage.

At the end of July, Gwangjin Wintec acquired a 70% stake in Ewell Energy, a waste raw material supply company, and was selected as the preferred negotiation partner in a public competitive bidding (Stalking Horse bid). With the rehabilitation plan approved, Gwangjin Wintec's acquisition of Ewell is now effectively in its final stages, pending official court approval.

Located in Jeju Island, Ewell is an eco-friendly combined heat and power plant that combusts bio SRF fuel to regenerate electricity and thermal energy. Ewell Energy is also a comprehensive waste company in Jeju, producing bio SRF fuel by processing waste wood. When Ewell Energy produces solid fuel from waste wood, it sends it to the power plant Ewell to generate electricity. This two-track strategy maximizes profits by earning revenue from waste disposal as well as selling the generated electricity.

A Gwangjin Wintec official stated, “With our subsidiary Ewell receiving approval for the rehabilitation plan, we will now fully launch the planned bio SRF power generation business. Starting with this, we will continue to invest steadily in environmentally friendly and sustainable businesses.”

Meanwhile, an investment banking (IB) industry insider commented, “Recently, Ewell has replaced more than 80% of its power generation facilities, and the newly installed equipment in 2020 has a remaining useful life of about 15 years or more. Also, Ewell currently supplies electricity to KEPCO, and the generated power is renewable energy, which allows income generation not only from SMP (System Marginal Price) but also additionally from REC (Renewable Energy Certificate).”