SEOUL: A Seoul court has sanctioned a procedure to identify new ownership for the struggling e-commerce platforms TMON and WeMakePrice, which have been under court-led rehabilitation since early September due to their failure to settle payments with vendors, according to industry sources. According to Yonhap News Agency, the Seoul Bankruptcy Court has appointed EY Hanyoung accounting firm to manage the sale of the e-commerce platforms, aiming to address the extensive payment delays. A source acquainted with the situation indicated that while TMON and WeMakePrice are listed for sale separately, they can be sold jointly if required. The sale will proceed through a stalking horse bid, where a preliminary bidder proposes a price ahead of a formal auction, allowing other bidders to offer their prices during the auction. The process necessitates that if a higher bid is made, the initial bidder must decide whether to acquire the platforms at the new price or withdraw. EY Hanyoung plans to gather letters of intent from potential buyers by November 8, with the preferred bidder expected to be chosen by December 11. Under the court-led rehabilitation framework, the accounting firm is tasked with evaluating the going concern value versus the liquidation value of the two platforms by November 29. Should the going concern value surpass the liquidation value, TMON and WeMakePrice are anticipated to present detailed rehabilitation plans to the court by December 27. The objective of initiating a merger and acquisition prior to the court's decision on rehabilitation plans is to expedite payments to vendors, the source noted. The e-commerce platforms sought corporate rehabilitation with the bankruptcy court in late July, prompting a probe by local financial authorities into unpaid bills and liquidity challenges. The authorities have estimated liabilities exceeding 1.5 trillion won (approximately US$1.1 billion), attributed to aggressive merger activities by their Singapore-based owner, Qoo10.
