Bukwang Pharmaceutical's headquarters. [Provided by Bukwang Pharmaceutical]
Bukwang Pharmaceutical's headquarters. [Provided by Bukwang Pharmaceutical]

Bukwang Pharmaceutical said Friday that its subsidiary Union Korea Pharm has filed an application with the Seoul Bankruptcy Court to close its court receivership proceedings.

Union Korea Pharm filed for receivership in September last year and, after undergoing restructuring and financial rehabilitation, received court approval for its reorganization plan on May 12.

Bukwang Pharmaceutical then paid in full 30 billion won ($21.2 million) in new share subscription funds on May 27, securing its position as the largest shareholder. Union Korea Pharm has since used those proceeds to carry out debt repayments under the reorganization plan without incident.

Having repaid nearly all of the 29.2 billion won in bonds subject to settlement this year — with only 76 million won in unconfirmed claims and other balances still outstanding — the company applied to the court to terminate the receivership proceedings under the Debtor Rehabilitation and Bankruptcy Act.

The application to close the receivership marks Union Korea Pharm's entry into full operational recovery, as the large-scale capital injection has resolved financial uncertainty and lifted the company out of capital impairment.

"Following the conclusion of the receivership, the debt ratio has improved dramatically to the 40% range," a Bukwang Pharmaceutical official said. "We will make an immediate disclosure once the court's closing decision is finalized and will move quickly to generate business synergies between the two companies."


silverpaper@heraldcorp.com