he Seoul Bankruptcy Court on Tuesday granted a rehabilitation process for liquidity crisis-hit e-commerce platforms TMON and WeMakePrice, allowing them to restructure their debts to creditors under the supervision of court-appointed custodians.

The decision came more than a month after TMON and WeMakePrice filed for court-supervised rehabilitation, following overdue payments to vendors operating on their platforms that reached nearly 1 trillion won (US$744 million).

The liquidity crisis was reportedly caused by aggressive merger deals by their owner, Singapore-based Qoo10.

Following the approval of the rehabilitation process, the court will appoint custodians, who will list the companies’ creditors and debts and draft rehabilitation plans.

Once the plans are drawn, the court will review them for final approval.

Source: Yonhap News Agency