[Asia Economy Reporter Kim Cheol-hyun] Mesh Korea has been released from court supervision following the dismissal of its rehabilitation application. Mesh Korea (CEO Kim Hyung-seol) announced on the 15th that it received a dismissal decision from the Seoul Rehabilitation Court regarding its application for rehabilitation proceedings.
The company submitted a request for dismissal of the voluntary restructuring support program (ARS) rehabilitation application to the rehabilitation court on the 6th. The court judged that the newly appointed management of Mesh Korea had received new investment funds from hy (formerly Korea Yakult) and had repaid all major debts, thereby resolving the cause for initiating rehabilitation proceedings.
On November 25 last year, former CEO Yoo Jeong-beom submitted an ARS rehabilitation application in his capacity as a shareholder, resulting in the court issuing a comprehensive injunction and preservation order.
Facing an imminent crisis with the start of corporate rehabilitation proceedings, Mesh Korea co-founder CEO Kim Hyung-seol pursued an investment attraction of approximately 80 billion KRW from hy and successfully closed the sale deal in about one month.
By being released from about three months of court supervision, Mesh Korea can now focus more on normalizing the company. Additionally, it plans to complete the hy sale process and concentrate all efforts on strengthening the competitiveness of its core business, motorcycle delivery.
A Mesh Korea official said, "With the confirmation of the hy sale deal, the court's dismissal of the rehabilitation application was possible," adding, "We will promptly complete the hy sale process based on the court's support and shareholder consent."
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