Beomhan Industry becomes STX's largest shareholder after court approves rehabilitation plan

Beomhan Industry has become the largest shareholder of STX after the Seoul Rehabilitation Court approved the troubled trading company's rehabilitation plan and the acquirer paid the full purchase price of 68 billion won ($50.9 million), STX said Tuesday.

Beomhan Industry now holds 94.9 percent of STX, having acquired 27.2 million shares through a third-party allotment capital increase, according to a regulatory filing. Korea Development Bank's holding fell to 1.7 percent, or 489,030 common shares, from 29.5 percent, a decline of 49,881,128 shares, with the change dated the 7th and attributed to a share consolidation.

Beomhan Industry was selected as the final buyer in a public competitive bidding process for STX held before the rehabilitation plan was approved. The Seoul Rehabilitation Court approved the plan after a creditors' meeting at which 100 percent of secured creditors and 91.5 percent of unsecured creditors voted in favor, far exceeding the statutory thresholds of 75 percent and 66.7 percent, respectively.

The rehabilitation plan calls for the repayment of secured and unsecured rehabilitation claims and the conversion of some unsecured claims into equity. The company also plans to expand its business activities and reorganize its main trading operations, focusing its capabilities on restoring competitiveness in its core business.

"I am grateful to the creditors who agreed on the rehabilitation plan, and to all stakeholders, including shareholders and business partners, who trusted and waited for the company during the rehabilitation process," an STX official said. "We will faithfully implement the rehabilitation plan and focus further on our main business to repay the trust placed in us."