[Edaily Reporter NA EUN-KYUNG ] BukwangPharmaceutical(003000) subsidiary UNION KOREA PHARM CO.,Ltd(080720)will reduce its debt-to-equity ratio to the 40% range following the conclusion of its rehabilitation proceedings and expand its pharmaceutical production partnership with BukwangPharmaceutical. Following the announcement the previous day that the rehabilitation proceedings had concluded, further details were disclosed regarding the extent of the financial restructuring and the specific business collaboration plans between the two companies following the acquisition.

According to BukwangPharmaceutical on the 1st, UNION KOREA PHARM CO.,Ltd has repaid most of its debts, excluding a remaining unpaid balance of 76 million won—which includes some undetermined claims—out of a total of 29.201 billion won in claims due for repayment this year. It has also fully repaid all past unpaid trade receivables, loans, and bonds with warrants (BW).

Consequently, the company explained that UNION KOREA PHARM CO.,Ltd.’s debt-to-equity ratio has improved to the 40% range from a state of negative equity prior to the acquisition. BukwangPharmaceutical explained that, excluding liabilities arising from normal business operations—such as accounts payable and provisions for returns—from the remaining debt, the debt-to-equity ratio stands at approximately 15%.

Production cooperation between BukwangPharmaceutical and UNION KOREA PHARM CO.,Ltd is also taking shape. BukwangPharmaceutical outsourced the production of the digestive aid “Complex Pazaim Double Tablet” to UNION KOREA PHARM CO.,Ltd and shipped it last June. The over-the-counter thyroid and endocrine medications “Hard Chewable Tablets” and “Hard Chewable Easy Tablets” are also being produced by UNION KOREA PHARM CO.,Ltd and are scheduled to begin shipping this month.

In May, BukwangPharmaceutical invested 30 billion won in UNION KOREA PHARM CO.,Ltd, becoming its largest shareholder. Using the investment funds, UNION KOREA PHARM CO.,Ltd repaid most of its rehabilitation claims and filed a petition with the Seoul Rehabilitation Court on the 14th of last month to terminate its rehabilitation proceedings; the court ruled to terminate the proceedings on the 31st of last month.

A BukwangPharmaceutical official stated, “We will strive to achieve growth for both companies and help UNION KOREA PHARM CO.,Ltd return to profitability by expanding sales and manufacturing synergies between the two firms,” adding, “Since the decision to acquire the company, we have been developing various strategies, including new business ventures, to maximize these synergies.”