Jeil M&S Continues Rehabilitation with Negative Equity and Liquidity Crisis

Rehabilitation proceedings commenced on Dec 16, 2025 at Suwon Bankruptcy Court; CEO Lee Young-jin appointed as legal administrator
On May 6, 2026, Pureun Investment Co., Ltd. confirmed as final M&A candidate; process ongoing
Consolidated equity negative by KRW 14.45 billion (capital impairment); current liabilities exceed current assets by KRW 38.91 billion
Q1 2026 consolidated revenue KRW 15.5 billion (down 89.2% YoY from KRW 142.9 billion); operating profit KRW 1.3 billion; net loss KRW 0.9 billion (swing to deficit)
Order backlog KRW 394.3 billion (including contract liabilities) but recognition risk due to rehabilitation uncertainty
Trading suspension of shares (since Apr 4, 2025); convertible bonds acceleration lost and filed as rehabilitation claims
Cash and cash equivalents KRW 3.9 billion (vs KRW 0.7 billion at year-end); short-term borrowings KRW 39.1 billion; current liabilities KRW 538.2 billion
Separate paid-in capital surplus KRW 115.5 billion; retained deficit KRW 141.5 billion (accumulated losses)
Collateral provided (land, buildings, etc.) KRW 33.2 billion; CEO joint guarantees KRW 34.2 billion