Winia Wins Court Approval for 'Dimchae' After Third Try

Winia's Corporate Rehabilitation Proceedings Begin After Multiple Attempts

After three attempts, Winia, a major affiliate of the Daeyu Winia Group and formerly known as Winia Dimchae, has finally received a court decision to commence rehabilitation proceedings. The Gwangju District Court’s Bankruptcy Division 1, presided over by Judge Yoo Seok-dong, made the decision on the 1st to initiate corporate rehabilitation proceedings (court receivership) for Winia.

The court provided several reasons for its decision. It noted that negotiations with a potential acquirer, who intends to acquire the debtor’s assets, are progressing significantly. Specifically, the acquirer has deposited 5% of the intended acquisition amount into the account of the designated sales agent, indicating substantial progress in these discussions.

Additionally, the court acknowledged that the potential acquirer’s proposal includes the succession of employment for a significant number of workers. Some creditors have even agreed to the rehabilitation process despite anticipating no repayment of their claims. These factors contributed to the court's decision to proceed with the rehabilitation.

Winia’s corporate rehabilitation proceedings were accepted by the Gwangju Court, where its headquarters is located, on the third application attempt. Prior to this, the company had faced rejections from other courts. In April, the Seoul Rehabilitation Court dismissed the rehabilitation proceedings. A renewed application in May was also rejected. In July, an attempt was made to transfer jurisdiction to the Suwon Rehabilitation Court, but it too was dismissed.

Hanmi Technology Industry, a Seoul-based home appliance and component wholesaler, then expressed its intention to acquire Winia. On the 3rd of last month, another application for rehabilitation proceedings was filed with the Gwangju District Court, where Winia’s headquarters is located.

Hanmi Technology Industry's Proposal

Hanmi Technology Industry submitted not only a letter of intent but also a conditional acquisition contract to the court. The proposed asset purchase method involves acquiring only the necessary tangible and intangible assets, such as machinery, real estate, business rights, and intellectual property rights, through individual contracts. This approach would not involve assuming debt or employment succession obligations.

The company also proposed maintaining employment for at least 100 workers, including 50 managerial and 50 technical staff out of the current approximately 250 employees. Additionally, severance payments would be provided to those who retire.

Financial Situation and Background

Winia has approximately 550 creditors, with total debts amounting to 4 billion Korean won. This includes 400 million Korean won in unpaid wages and severance payments to workers since October 2023, as well as payments owed to cooperative companies.

Winia, a flagship affiliate of the Daeyu Winia Group, has been producing the kimchi refrigerator 'Dimchae'. Amid intensified competition among home appliance companies and ongoing issues with unpaid wages, Winia applied for corporate rehabilitation proceedings in 2023 alongside Winia Electronics (formerly Dongbu Daewoo Electronics) and Winia Electronics Manufacturing. Since April, the company has completely halted production.

Alongside the rehabilitation process, Winia plans to begin preparations for resuming kimchi refrigerator production. This marks a crucial step in the company's efforts to recover and continue its operations.