DPECO is a motor vehicle engineering company established in 1998 that was listed on the KONEX market after it became the first domestic company to release a self-developed electronic mini-electric cargo truck.
The company began facing financial challenges due to disruptions in overseas business caused by COVID-19, suspension of trade on the KONEX market, lack of investors, and production delays caused by the retirement of executives and employees.
Upon receiving the request to address the imminent crisis, DR & AJU promptly filed for the commencement of rehabilitation procedures and obtained approval from the court in 20 days by proactively persuading the court of the case’s urgency. Furthermore, DR & AJU addressed the urgent need for fundraising by organizing an M&A process prior to the approval of the rehabilitation plan right after the commencement of rehabilitation procedures. DR & AJU collaborated with Deloitte Anjin LLC as the sale-side advisor to negotiate with potential acquirers and successfully concluded the investment contract. Additionally, to finance the working capital necessary for this urgent operation, DR & AJU successfully secured debtor in possession (DIP) financing from investors.
As a result of these efforts, DPECO obtained approval for the rehabilitation plan from the rehabilitation court and concluded the M&A on May 9, 2024.
By swiftly identifying the challenges faced by DPECO, DR & AJU promptly requested and obtained court approval for the commencement of rehabilitation procedures. Moreover, the firm proactively deliberated with DPECO on the legal measures necessary for the re-operation of the manufacturing plants and the resumption of order production. By leveraging the expertise and background of each attorney on the team, this case is a prime example of effective teamwork where DR & AJU was able to efficiently navigate DPECO through the complex corporate rehabilitation procedures, which can be difficult to navigate without collaborative effort.
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