Relief for victims is becoming increasingly distant... I was angry that I had no intention of giving money from the beginning.

['Timeef' corporate rehabilitation application]
◆ Fear of seller bankruptcy
Bonds frozen for the time being when rehabilitation procedures are agreed to
In case of bankruptcy, there is no other option than bankruptcy.
Either way, the possibility of additional damage increases.
Government support measures become virtually useless

It is expected that it will become more difficult for victims to receive relief as Timon and WeMakePrice, which caused large delays in settlement of seller payments and buyer refunds, applied to the court on the 29th to initiate rehabilitation. If you apply for corporate rehabilitation (court receivership), the court will issue a comprehensive injunction. In this case, all receivables, including financial and commercial receivables, will be frozen until the start of court receivership is decided, preventing sellers from receiving their unsettled payments back. For this reason, it may not be easy to obtain consent for court management from creditors, including the seller. If court receivership fails due to opposition from creditors, it is highly likely that Timon and WeMakePrice will go bankrupt unless Koo Young-bae, CEO of Q10, the parent company of Timon and WeMakePrice, steals his personal assets. Either way, it becomes difficult for victims to receive payment or refunds.

According to the industry on this day, as Timon and WeMakePrice applied for court receivership, the damage to sellers and buyers was bound to increase like a snowball. Immediately after applying for corporate rehabilitation on this day, Timon and WeMakePrice announced in a statement, “We have applied to initiate rehabilitation as a way to prevent the current vicious cycle and minimize damage to sales members and consumers. Instead of applying for the New Autonomous Restructuring Support (ARS) program and starting forced rehabilitation procedures right away, we plan to review whether it is possible to raise funds through the creation of a restructuring fund.” The ARS program is a system in which the court postpones the initiation of mandatory rehabilitation procedures and supports companies and creditors to autonomously negotiate restructuring.

However, contrary to the explanations of Timon and WeMakePrice, the damage to sellers and consumers is likely to increase further. In order for court receivership to be successful, the consent of more than two-thirds of creditors and three-quarters of secured creditors is required, but it is unlikely that creditors will agree. Even Timon and WeMakePrice cannot properly determine the extent of the seller's damage, so it may take a considerable amount of time to determine the number of creditors and the size of the claims. A lawyer specializing in court receivership pointed out, “Among the sellers who are on the verge of bankruptcy due to Timon and WeMakePrice, who would agree to court receivership?”

In fact, the amount of damage to sellers estimated by the government increased from the original 100 billion won to 213.4 billion won as of today. The size of unsettled payments from August to September, including transactions from June to July with settlement deadlines remaining, is expected to increase further. Previously, a memo from an employee was discovered in Timon's office predicting that the total amount of damage would be more than 1 trillion won.

There is also an analysis that if the court receivership fails and CEO Koo does not contribute his personal funds, bankruptcy is the only option for Timon and WeMakePrice. If Timon and WeMakePrice file for bankruptcy, compensation to victims will become more difficult. This is because it is unlikely that there will be any assets left in Timon and WeMakePrice, which are in a state of complete capital erosion. If this happens, small and medium-sized sellers will hardly be able to get their settlement money back, raising concerns that serial bankruptcies will become a reality. It is highly likely that the seller is a senior creditor. In the case of buyers, it appears that they will have to take other relief procedures, such as lawsuits.

Even if court receivership is accepted, damage is inevitable. When court receivership begins, payments are frozen for a period of time. This means that many of the sellers who are at risk of bankruptcy due to non-settlement of payments are being driven further to the brink.Attorney Bang In-tae of Daeryun Law Firm, who is reviewing the class action lawsuit of victims of the Timon and WeMakePrice incidents, said, “The meaning of going through corporate rehabilitation procedures is to apply for rehabilitation and have debts written off by those who previously lent a lot of money by converting their bonds into stocks or giving up some of their bonds in this way.” “It may not be received, but it is likely that it will take a long time to receive reimbursement,” he said.

Due to Timon and WeMakePrice's application for court receivership, the 560 billion won financial support plan announced by the government today is in a position to become virtually useless. An industry insider raised his voice, saying, “There has already been strong criticism that the government’s measures are like peeing on a frozen foot. If you can’t get the payment settled, what’s the point in getting a loan at a low interest rate or extending the loan?”

The sellers, who had said that the only solution would be for Timon and WeMakePrice to come forward and settle the sales price, were shocked. There was criticism that Timon and WeMakePrice had no intention of paying money from the beginning. One seller who did not receive payment raised his voice, saying, “Current sellers are all dying after hearing the news of the rehabilitation application,” and added, “Does it make sense to apply for rehabilitation in the afternoon after saying just this morning that they would donate their own money to settle the settlement?” He continued, “I am worried that I will not be able to receive all the money if I go through rehabilitation procedures,” and added, “There is also talk going around that I will only be able to receive about 10-20% of the settlement amount.”

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Seoul Economic Daily -Relief for victims is becoming increasingly distant... “I had no intention of giving money from the beginning” (Go to the link)

Asia Today - Timon and WeMakePrice apply for corporate rehabilitation in court... Victim Compensation ‘In the Fog’ (Shortcut)

Seoul Economic Daily -In the morning, he was robbing his company, and in the afternoon, he applied for corporate rehabilitation... Victims’ tears of blood (link)