Sale of Factory Worth 300 Billion Won
Iran Dayani Side Plans to Secure 23.6 Billion Won Through Forced Execution
Winia Electronics, which filed for court receivership due to financial difficulties, announced plans to address unpaid wages through the sale of its Mexico factory and rehabilitation procedures.
On the 26th, Winia Electronics released a plan document for repaying unpaid wages, stating this intention.
First, Winia Electronics plans to secure 23.6 billion KRW in dividends through compulsory execution against the Iranian Dayani party and use it to repay unpaid wages. Winia Electronics explained that it holds a claim worth approximately 23.6 billion KRW for goods payment against Iran's Entekhab Group, and in 2013, the group's CEO, Mohammad Reza Dayani (Dayani), personally guaranteed the related debt.
Winia Electronics obtained a provisional seizure order on the 23.6 billion KRW portion of Dayani's claim against the South Korean government and filed a main lawsuit, winning entirely in the first trial on September 1, 2022. The government deposited 23.6 billion KRW in court in December 2022, and the company intended to use the entire amount received from the dividend procedure for voluntary retirement payments and repayment of unpaid wages. However, Dayani's family filed a third-party objection lawsuit in January 2023, suspending the dividend procedure on the court deposit. Winia Electronics submitted a statement to the court on July 19, emphasizing the need for swift progress to promptly repay unpaid wages.
Additionally, Winia Electronics plans to sell its Mexico factory, valued at approximately 300 billion KRW, and use the proceeds to repay unpaid wages. Recently, Mexico's largest home appliance company Mabe and global home appliance company Electrolux conducted due diligence on the factory, and Winia Electronics is currently awaiting proposals regarding the sale price and acquisition structure. If Winia Electronics succeeds in selling the Mexico factory, it will secure funds sufficient to fully repay unpaid wages and further repay borrowings to affiliates.
Moreover, Winia Electronics filed for rehabilitation procedures on the 20th. Its subsidiary, Winia Electronics Manufacturing, which entered rehabilitation on the 21st, plans to use factory assets valued at 90 billion KRW under the rehabilitation process to fully repay unpaid wages.
Winia Electronics stated, "If the court accepts Winia Electronics' application and initiates rehabilitation procedures, unpaid wages will be classified as public claims, making repayment easier and greatly aiding in resolving the unpaid wage issue." It added, "The Daewoo Winia Group is also making its best efforts to resolve Winia Electronics' unpaid wages through the swift sale of key assets."
Winia Electronics was acquired by Daewoo Winia Group in 2018 after passing through Dongbu Group following the collapse of Daewoo Group during the foreign exchange crisis. After the trademark contract expired and the 'Daewoo' brand was dropped, the company struggled in overseas markets, and its overseas factories shut down due to the COVID-19 pandemic, worsening its management situation.
Furthermore, Park Hyun-chul, CEO of Winia Electronics, was arrested for withholding a total of 30.2 billion KRW in wages and retirement benefits for 409 workers, leading Winia Electronics to file for corporate rehabilitation procedures with the court on the 20th. The total unpaid wage damage related to Winia Electronics amounts to 13.3 billion KRW in wages and other allowances and approximately 16.9 billion KRW in retirement benefits, totaling 30.2 billion KRW.
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