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Photo courtesy of Korea Zinc. |
[Alpha Biz= Kim Jisun] A U.S. court has denied the request filed by Pedal Point Holdings, the U.S. subsidiary of Korea Zinc, to stay proceedings pending appeal.
According to Youngpoong on the 10th, the U.S. District Court for the Southern District of New York rejected Pedal Point’s motion on December 8 (local time) and upheld its previously issued discovery order.
Youngpoong stated that the ruling “reaffirms the legitimacy and necessity of the U.S. discovery process” and “officially confirms that Youngpoong’s investigation and document requests are being carried out through lawful and proper procedures.”
The court granted a one-week administrative temporary stay allowing Pedal Point to file a separate motion for stay with the appellate court. Youngpoong explained that this measure was merely procedural, taken to allow time for an appeal, and does not affect the validity of the existing discovery order. Unless the appellate court issues a separate ruling, Youngpoong will be able to obtain the requested documents as planned.
A Youngpoong representative said, “We will continue to respond faithfully to all legal procedures so that the facts related to the Ignio investment allegations can be reviewed objectively and transparently.”
In 2022, when Chairman Choi Yoon-beom was serving as Vice Chairman and CEO, Korea Zinc acquired Ignio through its U.S. subsidiary Pedal Point for approximately KRW 580 billion. Youngpoong has raised concerns over alleged overpayment, noting that Ignio’s equity was recorded at negative KRW 1.873 billion — indicating capital impairment — based on Korea Zinc’s public filings from November 2022 when the acquisition was finalized.
Alphabiz Reporter Kim Jisun(stockmk2020@alphabiz.co.kr)
