Requesting Additional Time for Rehabilitation Plan from Seoul Bankruptcy Court
Overcoming Crisis Through Broad Negotiations with Creditors and Investors
Gwangju City submitted a petition to the Seoul Bankruptcy Court on the 24th, requesting additional time to finalize the corporate rehabilitation process (court receivership) for Winia Co., Ltd., the region's anchor company in the home appliance industry.
The petition reflects the earnest wishes of Gwangju citizens, hoping that Winia, which is a vital workplace for local residents and supports the livelihoods of partner company employees and nearby business operators, will overcome the crisis in the home appliance industry through corporate rehabilitation and help revive the local economy.
In the petition, the city stated, "Winia is a leading home appliance company in Gwangju, having achieved the 'Dimchae Legend' of being the No. 1 kimchi refrigerator brand for 25 consecutive years based on its unrivaled technology," and added, "If this current crisis is successfully overcome, it will become a turning point for the local economy, including Gwangju's home appliance industry, allowing workers facing unemployment and Gwangju citizens to regain hope and lead their daily lives."
The city further emphasized, "The home appliance industry accounts for nearly 20% of the total sales of Gwangju's manufacturing sector, and 22% of this is handled by four Dayou Winia Group affiliates, including Winia. The default of Dayou Winia is having a significant impact on local industries and the economy," and warned, "If Winia's crisis is not properly resolved, not only the company's employees but also partner companies, nearby businesses, and small business owners will suffer a chain reaction of damage."
The city stated, "We have learned that a potential buyer has recently emerged and negotiations are underway, and we understand that all parties involved are doing their utmost," and requested the court to "grant additional time to prepare a rehabilitation plan, taking this into consideration."
The city also added, "If additional time is allowed to prepare the rehabilitation plan, it will be possible to establish a stable rehabilitation plan through broad negotiations among creditors and investors."
Meanwhile, to minimize the damage caused by the Winia situation, Gwangju City has allocated 20 billion won in management stabilization funds, provided financial support such as extending existing loan maturities, deferring principal repayments, 5 billion won in special guarantees from the Gwangju Credit Guarantee Foundation, and designated the area as a special support zone for small and medium-sized enterprises. The city is working with the government and related agencies through a working-level council to implement all possible support measures. Winia is currently undergoing corporate rehabilitation procedures, and the deadline for approval of the rehabilitation plan is April 23.
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