Posted on September 11, 2016
By Ahn Sung-mi, The Korea Herald
Aju Corp. on Sept. 8 said it has signed a deal to take over Kongyoung Haeun, a Korean firm that specializes in sand dredging, ending a two-year long court receivership of the debt-ridden company.
Aju will submit a rehabilitation plan for Kongyoung to the Seoul Central District Court and hold talks with its creditors to finalize the procedure. The acquisition deal is expected to be completed by end-October.
Kongyoung Haeun, an affiliate of asphalt manufacturer Kongyoungsa, started operations in 2010. In 2014, the firm entered court protection, as a result of the heavy loans for developing infrastructure at Pyeongtaek Port in 2011.
Aju is expected to benefit from the acquisition by utilizing Kongyoung’s strong business network in Chungcheong Province and Gyeonggi Province and expand its business in sand dredging and other areas of aggregate mining.
Aju entered the bid in July 21 and was selected as the preferred bidder on Aug. 3.
Source: The Korea Herald
