Hampered by a liquidity problem, Korean ultrasound vendor Medison has defaulted on a $3.6 million (U.S.) loan payment as well as a subsequent $700,000 payment.
In accordance with Korean corporate law regarding payment defaults, Medison has been placed under court receivership. After the court reviews Medison's situation, it will decide how the firm will recover, according to Medison of Seoul.
While Medison has cleared out a large portion of its burgeoning debt through restructuring, the company said that recent cash flow shortages have added to its financial burden. Medison said, however, that it is neither bankrupt nor out of business. Outside of the finance unit, there are no problems with any other Medison segments and the company is headed for recovery, said chief manager of marketing Joon Park.
By AuntMinnie.com staff writersFebruary 5, 2002
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