Sambu Construction has received court approval for its rehabilitation plan and is now embarking on full-scale financial restructuring. A capital reduction on a massive scale and a paid-in capital increase through debt-to-equity conversion will be carried out sequentially.

Court Approves Rehabilitation Plan… "Statutory Requirements Met"

Sambu Construction announced in a regulatory filing on the 26th that it received approval from the Seoul Rehabilitation Court for the rehabilitation plan submitted by the administrator. The plan was passed at the creditors' meeting held on the same day, and the court decided to grant approval, determining that it satisfies the requirements under Article 243, Paragraph 1 of the Debtor Rehabilitation and Bankruptcy Act. Both the decision date and the date of receipt of the decision document are June 26, 2026.

96.3% Capital Reduction Implemented… Issued Shares Reduced to Approximately 8.5 Million

Under the rehabilitation plan, Sambu Construction will first implement a 96.30% capital reduction. By reducing 221,175,090 common shares, the total number of issued shares will decrease from the existing 229,681,824 to 8,506,734. As a result, capital will also decline from 229.681824 billion won to 8.506734 billion won.

The capital reduction will be carried out through a 27-to-1 stock consolidation. The reference date for the capital reduction is June 30, 2026, and the effective date of the stock consolidation is July 1, 2026.

Debt-to-Equity Conversion of Rehabilitation Claims… 115.01 Million New Shares Issued

Subsequently, 115,014,016 common shares will be issued through a third-party allotment for the debt-to-equity conversion of rehabilitation claims and rehabilitation security interests. The issue price of the new shares is 1,000 won per share, and no cash payment will be made as this is conducted through debt-to-equity conversion. The payment date is July 3, 2026, and the scheduled listing date for the new shares is September 1, 2026.

Future Schedule: Consolidation → Debt-to-Equity Conversion → Re-consolidation → Capital Increase to Proceed Sequentially

• The company plans to sequentially carry out the following procedures in accordance with the rehabilitation plan:
• First stock consolidation: July 1
• Debt-to-equity conversion: July 4
• Second stock re-consolidation: July 11
• Effective date of third-party allotment paid-in capital increase: July 14

Allotment Status by Creditor Subject to Debt-to-Equity Conversion

Among the creditors subject to debt-to-equity conversion, Korea Asset Trust received the largest allotment of 24,262,365 shares. It was followed by DYD (3,825,888 shares), CRK (3,221,904 shares), Hyundai E&C (3,087,994 shares), and the Busan-Ulsan Regional Headquarters of Korea Land and Housing Corporation (2,481,936 shares). The company stated that while numerous rehabilitation creditors exist, only the top 10 creditors were disclosed in the regulatory filing.