Ascend bankruptcy puts SK Ecoplant’s 102.866 billion won liability in focus

  • SKS PE plans to exercise its Ascend investment put option against SK Ecoplant.
  • SK Ecoplant recognized ₩102.87 billion in derivative liabilities at the half-year.
  • Ascend filed for Chapter 11 in April before subsequently entering liquidation proceedings.

U.S. battery recycling company Ascend Elements’ bankruptcy has increased the likelihood that SK Ecoplant will face additional payments under an agreement tied to its 2024 transfer of Ascend convertible preferred shares to SKS Private Equity. SKS PE plans to exercise a put option against SK Ecoplant, which would activate a mechanism requiring the company to cover the gap between the investment’s final recovery and a contractually agreed benchmark return. Ascend filed for Chapter 11 bankruptcy protection under U.S. law in April and subsequently entered liquidation proceedings, eliminating the planned IPO exit route. SK Ecoplant recognized ₩102.87 billion in derivative liabilities in its first-half semi-annual report, although that fair-value estimate may differ from the eventual settlement. The new account puts the company’s remaining Ascend holding at 26,025 shares, or 0.92%, revising the previously reported 260,250 shares; the stake carries a book value of zero. SK Ecoplant also recorded a ₩11.98 billion impairment loss on Ascend investment assets during the first half. The eventual cash outflow will depend on Ascend’s final liquidation recovery and the agreement’s contractual conditions.

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