Oasis to Acquire TMON as Court Grants Compulsory Approval of Rehabilitation Plan

Court: "In the Interests of All Stakeholders"

The court granted a compulsory approval of TMON's rehabilitation plan on June 23. As a result, Oasis Market, a dawn delivery company, is now able to acquire TMON.

The 3rd Division for Rehabilitation of the Seoul Bankruptcy Court (Presiding Judge Jung Junyoung) stated on June 23, "The approval of the rehabilitation plan serves the interests of all stakeholders," and added, "We have established provisions for the protection of rights for commercial creditors (small and medium-sized business owners and consumers) and have made a compulsory approval decision."

The court explained that it considered the following factors: ▲compliance with the principle of guaranteeing liquidation value; ▲the fact that more than half (59.47%) of rehabilitation creditors agreed to the plan; ▲the very high likelihood of executing the plan, as the full acquisition payment has been made; and ▲the benefit to the job security of employees.

At the stakeholders' meeting held on June 20 to review and vote on the rehabilitation plan, the plan was rejected due to failure to meet the approval requirements. At the meeting, 100% of secured rehabilitation creditors, 43.48% of commercial rehabilitation creditors (small and medium-sized business owners and consumers), and 82.16% of general rehabilitation creditors (other creditors) agreed to the plan, which was insufficient to meet the approval threshold. For the rehabilitation plan to be approved, at least three-quarters of secured rehabilitation creditors and at least two-thirds of rehabilitation creditors must agree.

However, at the stakeholders' meeting, TMON's administrator expressed an opinion requesting a compulsory approval decision by establishing provisions for the protection of rights. As a result, the court reviewed the possibility of compulsory approval and announced its decision on this day.