Zalman Tech | KitGuru https://www.kitguru.net KitGuru.net - Tech News | Hardware News | Hardware Reviews | IOS | Mobile | Gaming | Graphics Cards Sat, 08 Nov 2014 00:06:53 +0000 en-US hourly 1 https://wordpress.org/?v=6.4.3 https://www.kitguru.net/wp-content/uploads/2021/06/cropped-KITGURU-Light-Background-SQUARE2-32x32.png Zalman Tech | KitGuru https://www.kitguru.net 32 32 Zalman: We are not bankrupt, we only have financial difficulties https://www.kitguru.net/components/cooling/anton-shilov/zalman-we-are-not-bankrupt-we-only-have-financial-difficulties/ https://www.kitguru.net/components/cooling/anton-shilov/zalman-we-are-not-bankrupt-we-only-have-financial-difficulties/#comments Fri, 07 Nov 2014 23:30:24 +0000 http://www.kitguru.net/?p=221000 Zalman USA, a private company that distributes coolers and other products by Zalman Tech in the U.S., on Friday issued a statement denying bankruptcy of Zalman Tech. The company promised to clarify the situation about the insolvency of its parent company as well as reveal more about the future of Zalman by the end of …

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Zalman USA, a private company that distributes coolers and other products by Zalman Tech in the U.S., on Friday issued a statement denying bankruptcy of Zalman Tech. The company promised to clarify the situation about the insolvency of its parent company as well as reveal more about the future of Zalman by the end of the month.

“I know that recently various media and other vendors are spreading rumors regarding Zalman going bankrupt over the recent scandals in Korea by our parent company Moneual,” said a spokesperson for Zalman USA in a statement published by Tom’s Hardware. “I wanted to assure you that these rumors of Zalman HQ going bankrupt are completely false. While our HQ is having some financial difficulties due to the recent troubles experienced by Moneual, Zalman is not going bankrupt.”

The representative for Zalman USA stressed that the company would continue to fulfill warranty obligations and provide support to its customers and that “nothing would change for owners of existing products or warranties.” More details regarding the current situation with Zalman as well as future plans of the company are expected to be revealed late in November.

According to a disclosure that Zalman Tech Co., LTD made via Korea stock exchange (KOSDAQ), the company filed an “application for commencement of company reorganization” on the 3rd of November, 2014. In accordance with the laws of South Korea, if the company cannot relay the debts that are due without incurring significant inconvenience to the continuation of the business, the company may apply to the court for the commencement of reorganization proceedings. This provision shall also apply in cases where there is a danger of bankruptcy in respect of the company.

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While formally Zalman Tech Co., LTD is not a bankrupt, there are chances that the court will pronounce it a bankrupt and will insist on appropriate proceedings. Still there are chances that Zalman will restructure itself and will continue operations.

Privately held Moneual, a company that is known for robotic vacuum cleaners outside of South Korea, acquired a 60 per cent stake in Zalman Tech back in 2011. Scott Park (Min-seok Park), chief executive officer of Zalman Tech, is also a vice president of Moneual and a brother of Moneual CEO Harold Park (Hong-seok).

According to media reports, Moneual used Zalman’s reputation and successful track-record to falsify its export data and illegally obtain credits from various South Korean banks under guarantees issued by the Korea Trade Insurance Corp. (K-Sure). After the company failed to pay a part of the debt in late October, it began insolvency procedures. Moneual’s debts total 3.2 trillion won ($2.98 billion).

While at present Zalman Tech continues operations and carries on shipments of products, it is being restructured and its future depends on the Korean court’s decision.

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KitGuru Says: While this is not the end for Zalman Tech and formally it is not a bankrupt, its future still looks very uncertain.

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Zalman Tech files for bankruptcy https://www.kitguru.net/components/cooling/anton-shilov/zalman-tech-files-for-bankruptcy/ https://www.kitguru.net/components/cooling/anton-shilov/zalman-tech-files-for-bankruptcy/#comments Thu, 06 Nov 2014 03:29:57 +0000 http://www.kitguru.net/?p=220549 Zalman Tech, a legendary maker of cooling solutions and other devices, has filed for bankruptcy. The company had to file for insolvency protection in South Korea because its parent company Moneual took loans it could not eventually repay by using fabricated export data. The destiny of Zalman is unclear. Zalman was established in 1999 and …

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Zalman Tech, a legendary maker of cooling solutions and other devices, has filed for bankruptcy. The company had to file for insolvency protection in South Korea because its parent company Moneual took loans it could not eventually repay by using fabricated export data. The destiny of Zalman is unclear.

Zalman was established in 1999 and initially focused purely on coolers for microprocessors and graphics cards. The company quickly expanded its range of products in the early 2000s to include PC cases, power supply units, keyboards & mice, audio products, liquid cooling systems, car DVRs and even stereo-3D displays.

Zalman’s cooling solutions have a very good reputation among PC enthusiasts. They are utterly quiet, very efficient and extremely reliable. The company has spent tremendous amounts of money and effort to develop its coolers and holds numerous patents in various countries.

zalman_cooler

In 2011 around 60 per cent stake in Zalman Tech was purchased by Moneual, a maker of consumer electronics from South Korea that sells robotic vacuum cleaners in the U.S. Unfortunately, the company used Zalman’s reputation and successful track-record to falsify its export data and illegally obtain credits from various South Korean banks under guarantees issued by the Korea Trade Insurance Corp. (K-Sure), reports the Korea Times. K-Sure issued the guarantees backed by the export records, shipping documents and bank statements.

Moneual’s debts total 3.2 trillion won ($2.98 billion). The company began insolvency procedures in October because it failed to pay a part of the debt.

According to a former employee of Moneual, the management team – CEO Harold Park (Hong-seok), his brother and vice president, Scott Park (Min-seok), and another vice president, Won Duck-yeok – intentionally violated laws to gain credits.

“Achieving 1 trillion won in revenue in just three to four years is impossible unless it is fabricated,” said the unnamed employee in an interview with Korea JoongAng Daily. “The documents were fabricated as if the parts were being exported [to the U.S.] since the finished product is larger and more expensive [than the parts]. That way it was easy to borrow loans by credit through cooked-up revenue. The capital increases created from acquiring Zalman Tech [in 2011] were spent on running Moneual. The management ran the company with recklessness that was already planned.”

zalman_cooler_1

It is unclear what happens to Zalman now. Given that it has an excellent portfolio of products, strong brand recognition, a great engineering team as well as a lot of intellectual property and expertise, other makers of coolers could acquire the firm or what remains of it. Unfortunately, Zalman might well vanish into oblivion.

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KitGuru Says: It will be very sad to see Zalman disappear from the market because of fraud by a vacuum cleaner maker’s management. The company has a remarkable history, it builds great products and many enthusiasts love it.

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