Oasis Fails to Acquire TMON... Court to Review Compulsory Approval by the 23rd

Rehabilitation Plan Rejected Due to Lack of Quorum
Court Considers Compulsory Approval... Final Decision on the 23rd
Oasis May Acquire TMON If Compulsory Approval Is Granted
If Rejected, Liquidation Proceedings Will Begin

The acquisition of TMON by Oasis Market, a dawn delivery company, has fallen through after the court rejected TMON's rehabilitation plan.

The Seoul Bankruptcy Court announced on June 20 that it would decide by the 23rd whether to approve the rehabilitation plan by compulsory order or to terminate the rehabilitation proceedings, taking into account the contents of the rehabilitation plan and the results of the stakeholders' meeting. Oasis stated that it would wait for the court's decision.

The rehabilitation plan was rejected following a stakeholders' meeting held to review and vote on TMON's rehabilitation plan. At the meeting, 100% of secured creditors, 43.48% of commercial rehabilitation creditors (small business owners and consumers), and 82.16% of general rehabilitation creditors (other creditors) agreed to the plan. The plan failed to meet the requirements for approval.

For the rehabilitation plan to be approved, more than three-quarters of secured creditors and more than two-thirds of rehabilitation creditors must agree.

In a statement, Oasis Market said, "Both the secured creditors and the general rehabilitation creditors exceeded the approval threshold," but added, "In the case of the small business creditor group, the number of participants was insufficient due to the large number of total creditors, so the minimum quorum required for a vote was not met."

The statement continued, "The court has said it will make a final decision next week, and Oasis will humbly await the court's final judgment on approval," adding, "Once the court's final decision is made, we will be able to share Oasis's position again."

Going forward, the court will make a comprehensive decision by the 23rd on whether to approve the rehabilitation plan by compulsory order or to terminate the rehabilitation proceedings, taking into account the contents of the plan, the results of the stakeholders' meeting, and the statements of the debtor's manager and interested parties.