[THE INVESTOR] A handful of Korean companies, which have put under court-led restructuring programs, are seeking out new buyers, sources said on June 17.

Financially troubled firms, mainly builders, are putting themselves on the mergers and acquisitions market after the Seoul Central District Court helps them to clean up their balance sheet during the debt workout scheme.

“The local M&A market is expected to be packed by firms that underwent court-led revamp as more companies rely on the court after failing to stay afloat under a restricting process driven by creditor banks,” an industry official said. 


The sale of midsized construction firm Dongbu is in the final stage as the company is expected to complete negotiations over acquisition price with U.S.-based Keystone Private Equity, which has been selected as the preferred bidder for the deal.

Sambu Construction, which entered into court receivership in September last year, is currently waiting for potential buyers to submit letters of intent after officially announcing its sale on June 15.

According to a source, seven candidates have expressed interest to buy Keangnam Enterprises during a preliminary bidding. The firm filed for receivership in March last year.

Other builders that are in the process of striking M&A deal include STX Construction and Dongah Construction.

By Park Han-na (hnpark@heraldcorp.com)