Eutilex Files for Termination of Rehabilitation as Liquidation Value Exceeds Going Concern, Shareholder Value at Risk of Total Loss

Eutilex filed for termination of its rehabilitation procedure after a court-appointed investigation revealed that the liquidation value of approximately 20.3 billion KRW far exceeds the negative going concern value of negative 38.3 billion KRW.
According to the investigation report, total adjusted assets stood at about 37.7 billion KRW and total liabilities at 19.4 billion KRW, but current assets are only about 0.8 billion KRW or 2% of total assets, indicating a severe liquidity crisis.
If the court approves the termination, the company will enter liquidation, and existing shareholders are highly likely to lose their entire investment.
[AI Summary]Eutilex's application to terminate rehabilitation is an inevitable step under the legal requirement that liquidation value clearly exceeds going concern value. Given the negative going concern value and acute liquidity shortage, shareholder value is expected to be wiped out, making this an extremely negative signal for investors.