BOE HYDIS: Bankruptcy Court Approves Rehabilitation Plan
Company Reporter, June 5, 2007
BOE Hydis' Corporate Rehabilitation
Plan was approved by a review panel of the Seoul Central District 3rd
Bankruptcy Court on May 31. The plan was part of the
company's application for Court Receivership and was approved with 90
percent of rehabilitation security holders and 97 percent of creditors
The rehabilitation security is held by the Industrial Bank of Korea,
Korea Exchange Bank, Woori Bank, Hyundai Fire & Marine Insurance
Co., Ltd., Hynix Semiconductor Co., Ltd., and various rehabilitation
creditors, including the Korea Federation of Community Credit
Cooperatives and National Credit Union Federation of Korea.
As a condition of the Court Receivership, 100% of shares issued held by
its largest shareholder, the BOE Technology Group, will be dissolved
without compensation. The BOE Technology Group is considered
responsible for the management failure of the company.
Due to deteriorating market conditions in the TFT-LCD sector and the
company's liquidity problems, BOE HYDIS filed for Court Receivership on
Sept. 8, 2006. On Sept. 29, the company commenced its
restructuring process. The 1st meeting of interested parties
with Creditors was held on Jan. 19 of this year, followed by the 2nd and
3rd meeting of interested parties on April 19. Due to
differing opinions among some of the creditors on repayment rate, the
3rd meeting of interested parties was reheld on May 31 where the
creditor agreement was sufficient for BOE HYDIS to receive Court
Receivership approval in eight months after the original filing.
With approval of Court Receivership, BOE Hydis has secured its Corporate
Haesung Park, the court-appointed supervising director of BOE HYDIS
stated, "Although the company is currently under Court Receivership
due to deteriorating profitability caused by oversupply, the plunging
prices of TFT-LCD products, and the temporary liquidity problem, BOE
HYDIS' 20 years of accumulated technologies, most notably our in-house
developed AFFS, in addition to our small to mid-sized product
development competitiveness, strong cooperative relationships with
strategic clients, and other supporting factors were recognized by the
court and Court Receivership was approved. And now for rapid
recovery and normalization of the company, we will aggressively seek out
investors and pursue M&As."
BOE Hydis launched its operations as Hyundai Electronic's LCD Business
Division in 1989. In 2001, the company spun-off from Hyundai
Electronics and established the corporate name HYDIS. It was then
acquired by BOE Group of China and became today's BOE HYDIS.
BOE Hydis Technology
Headquartered in Seoul, South Korea, BOE Hydis Technology Company,
Limited -- http://www.boehydis.com/ --
develops, manufactures and distributes flat panel display products
for a wide range of applications, including laptop computers, Tablet
PC's, monitors, medical, avionic and car navigation systems.
China's BOE Technology Group Co. acquired the Company from Korea's Hynix
Semiconductor Inc. in 2003. BOE Hydis is one of the 10 LCD
manufacturers in the world and has over 1,000 employees in China,
Germany, Japan, Korea, Singapore, Taiwan, and the United States.