Balaan Receives Court Approval to Pursue M&A... "Selecting Sales Advisor"

Request for Proposal Sent to Domestic Accounting Firms
"We Aim for Early Management Normalization and Business Stability"

Balaan, a luxury goods platform currently undergoing corporate rehabilitation proceedings (court receivership), announced on April 21 that it has received approval from the Seoul Bankruptcy Court to proceed with a merger and acquisition (M&A).

Balaan applied to the court for approval to pursue an M&A prior to the approval of its rehabilitation plan on April 11, and received final approval on April 17.

Yonhap News Agency

Accordingly, Balaan has sent a request for proposal (RFP) for the selection of a sales advisor to the top five domestic accounting firms as of last year.The evaluation of the M&A advisor will be conducted by a review panel consisting of three members: the court-appointed rehabilitation officer (CRO), a legal advisor, and the administrator (CEO).

After the advisor is selected, the M&A process may last up to six months and may be extended if necessary. The sale will be conducted using a "stalking horse" method, in which a preferred negotiating party is designated in advance while an open bidding process is held simultaneously.

Through this M&A, Balaan aims to secure external funding at an early stage and normalize its management. The company plans to settle outstanding partner trade payables and guarantee employment for its employees, thereby aiming to conclude the rehabilitation process early. Balaan's trade payables amount to approximately 18.79 billion won, with unsettled payments to sellers totaling about 17.69 billion won.

A Balaan representative stated, "This court approval will serve as an important milestone for the early normalization of management and securing business stability, and will help expedite the normalization of operations by establishing a foundation for sustainable growth."