Samyoung E&C will sequentially implement a first capital reduction, conversion of rehabilitation claims into equity, a second capital reduction, and a third-party allocation rights offering, in accordance with the rehabilitation plan approved by the Busan Rehabilitation Court.

The company received court approval of its rehabilitation plan on the 29th, with the board resolution and shareholders' meeting resolution substituted by the court's approval.

■ First Capital Reduction... 15.64% of Issued Shares to Be Canceled Without Compensation, Effective October 13

In the first capital reduction, of the 16,093,838 common shares issued before the approval of the rehabilitation plan, 2,516,344 shares—corresponding to 80% of the 3,145,428 shares held by the largest shareholder and related parties—will be canceled without compensation.

As a result, the number of issued shares will decrease from 16,093,838 to 13,577,494, and capital will decrease from 8,046,919,000 won to 6,788,747,000 won. The capital reduction ratio is 15.64%, with the effective date of October 13.

■ Conversion of Rehabilitation Claims into Equity... 12,707,565 New Common Shares to Be Issued, Largest Shareholder to Change

Next, the company will convert a portion of its rehabilitation claims into equity by issuing 12,707,565 new common shares. The new share issue price is 500 won per share, with debt repayment funds of 6,353,782,500 won in terms of capital raised.

The company stated that this debt-to-equity conversion is for the repayment of a portion of rehabilitation claims and involves no new payment of capital. The effective date of the conversion is October 16, and the largest shareholder is expected to change as a result.

Among the third-party allocation recipients listed in the regulatory filing, the top five by number of allocated shares are: KB Securities with 5,849,461 shares, Korea Development Bank with 3,638,438 shares, NH Investment & Securities with 1,949,820 shares, Intellian Technologies with 337,457 shares, and AM with 167,846 shares. The company explained that it disclosed only the top five recipients by allocation, not all recipients.

■ Second Capital Reduction... 4-to-1 Share Consolidation, 75% Capital Reduction Ratio, Effective November 10

After the debt-to-equity conversion, the company will implement a second capital reduction. Targeting the remaining shares after the cancellation of existing shares and the new shares issued through the conversion of rehabilitation claims, four common shares with a par value of 500 won will be consolidated into one common share of the same par value.

Accordingly, the number of issued common shares will decrease from 26,285,059 to 6,569,206, and capital will decrease from 13,142,529,500 won to 3,284,603,000 won. The capital reduction ratio is 75%, with the effective date of November 10.

■ Third-Party Allocation Rights Offering... New Shares Expected to Be Listed on December 4

The company stated that, following the rehabilitation plan, it will sequentially implement the third-party allocation rights offering after the first capital reduction, the debt-to-equity conversion, and the second capital reduction. The effective date of the third-party allocation rights offering is scheduled for November 17.

The scheduled listing date for the new shares is December 4, though it may change depending on decisions by the rehabilitation court and practical procedures. Additionally, the effective dates of each step may also vary depending on the progress of administrative processing.