SEOUL, SOUTH KOREA - The Seoul Bankruptcy Court granted TMON and WeMakePrice, two leading e-commerce platforms, a one-month period to pursue self-led debt restructuring. This decision comes in the wake of their failure to fulfill payment obligations to various vendors.
According to Yonhap News Agency, the delay in payments by these companies has accumulated debts totaling approximately 274 billion won (US$200 million). With potential future obligations, this amount could surge to nearly 1 trillion won. During this month-long phase, known as the autonomous restructuring support program (ARS), the companies will engage in voluntary negotiations with creditors to reorganize their debts, while the court withholds its judgment on initiating a formal court-led restructuring process.
The court has the option to extend this autonomous restructuring period up to three months. TMON and WeMakePrice have faced criticism for continuing business operations despite knowing their inability to make timely payments due to liquidity constraints.
Further, the court has scheduled a consultation on August 13 that will include government representatives and related organizations, aiming to lessen the financial impact on small merchants affected by the platforms' payment delays. This meeting could be crucial in determining the future course for TMON and WeMakePrice, particularly if they fail to strike a deal with their creditors, after which the court may consider resuming the restructuring proceedings under its supervision.