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Advised POSCO Plantec’s Successful Turnaround by Issuances of New Shares to Creditors and Investor
- Recent Matters
- 2020.07.01
Yoon & Yang LLC successfully advised POSCO Plantec, a financially troubled POSCO affiliate, on its turnaround through M&A.
POSCO Plantec, a Korean industrial machinery manufacturer, commenced its restructuring program in June 2015 while it was under the supervision of creditor banks including Korea Development Bank. However, after implementing intensive restructuring programs, the company selected United Asset Management Company (UAMCO) as a preferred bidder to purchase the company in late 2019. POSCO Plantec issued new shares to creditors through debt-to-equity conversion and also issued additional new shares to UAMCO in March 2020. POSCO Plantec was able to improve its financial structure through such transactions and finally emerged out of the restructuring program in June 2020.
Yoon & Yang advised POSCO Plantec on all aspects of the transactions including the selection of preferred bidder, the paid-in capital increase for third-party allocation by issuing new shares, the debt-to-equity conversion, and the capital reduction without refund. In particular, Yoon & Yang advised POSCO Plantec with respect to bidding process, structure of transactions, contract drafting and negotiation, and closing.
Yoon & Yang has a long track record of advising on distressed company M&A transactions. In 2011, the firm successfully advised Woori Financial Group on its acquisition of Samhwa Mutual Savings Bank after Samhwa went bankrupt because of financial troubles.
POSCO Plantec, a Korean industrial machinery manufacturer, commenced its restructuring program in June 2015 while it was under the supervision of creditor banks including Korea Development Bank. However, after implementing intensive restructuring programs, the company selected United Asset Management Company (UAMCO) as a preferred bidder to purchase the company in late 2019. POSCO Plantec issued new shares to creditors through debt-to-equity conversion and also issued additional new shares to UAMCO in March 2020. POSCO Plantec was able to improve its financial structure through such transactions and finally emerged out of the restructuring program in June 2020.
Yoon & Yang advised POSCO Plantec on all aspects of the transactions including the selection of preferred bidder, the paid-in capital increase for third-party allocation by issuing new shares, the debt-to-equity conversion, and the capital reduction without refund. In particular, Yoon & Yang advised POSCO Plantec with respect to bidding process, structure of transactions, contract drafting and negotiation, and closing.
Yoon & Yang has a long track record of advising on distressed company M&A transactions. In 2011, the firm successfully advised Woori Financial Group on its acquisition of Samhwa Mutual Savings Bank after Samhwa went bankrupt because of financial troubles.
