We acted as an intermediary for a pre-packaged M&A involving our client, J-3 Co., Ltd., a reclaimed semiconductor wafer manufacturer. The client faced severe financial distress as its liquidity deteriorated significantly due to delays in factory construction, cost overruns, prolonged operating losses, and investment institutions’ demands for fund recovery. To address this crisis, the client filed for rehabilitation with the Daejeon District Court on May 24. 2023.
During the rehabilitation process, the client determined that attracting new funds through an M&A was essential to stabilize operations and decided to pursue a pre-packaged M&A. The client appointed Samil PricewaterhouseCoopers and DR & AJU as M&A intermediaries and conducted a public bidding process.
Despite the risk of the deal falling through due to the lack of a suitable buyer, Chemtronics, a KOSDAQ-listed company, acquired the client through its subsidiary by way of a third-party allotment capital increase, enabling the successful completion of the rehabilitation process.
As the largest pre-packaged M&A deal involving rehabilitation procedures handled by the Daejeon District Court in 2024, the case attracted significant attention from both the court and the market. We guided the client through every stage of the transaction, helping secure new funding, complete the rehabilitation, and restore stable operations in partnership with the acquirer.
