YOON&YANG

Yoon & Yang LLC formed a consortium with Ernst & Young and assumed the role of the underwriter in the restructuring M&A of Powernet, and successfully completed the transaction.   As a result, the Chuncheon District Court having jurisdiction over the M&A made a decision to end the liquidation procedure for Powernet in February 2010.

Powernet commenced the liquidation procedure in January 2005.  It is a firm specializing in the manufacture and sale of switching mode power supplies (SMPS), especially for LCD monitors.  The M&A procedure for Powernet began in August 2009, and KB-Glenwood consortium was selected as a preferred bidder through an open competitive bidding.  The said consortium established KB-Glenwood Private Equity Fund (PEF) and took over 92.6% of Powernet’s new shares through Cheonggang Co., Ltd. wholly owned by the said PEF.  The total acquisition amount is about KRW76 billion. 

After the completion of the transaction, Powernet immediately completed payment for its remaining creditor claims with the purchase price, and received a decision for ending the liquidation procedure one month after the execution of the relevant investment agreement in February 2010.

The consortium between Yoon & Yang and Ernst & Young had worked as the underwriter for Knowledge-on in another successful restructuring M&A and the successful restructuring M&A of Powernet demonstrates this effective partnership.