Nothing seems to be working for YG Entertainment. The Korean company has been embroiled in controversies ever since its former CEO was accused of providing sex services and later booked over gambling charges as well.
According to the latest report from the Korean Herald, YG Entertainment is all set to return an investment worth 67 billion won ($56.5 million) related to redeemable convertible preferred shares to French luxury giant LVMH next month.
Unconfirmed sources have said that the date of repayment of the investment of 1,359,688 redeemable convertible preferred YG shares is October 16. The French company LVMH had purchased the preferred shares back in October 2014.
The investment had a condition attached that the entertainment company would “convert the preferred shares to common stock at the price of 43,574 won per share or return 67 billion won in cash if LVMH preferred such an option five years after the initial investment.”
Recently, the Seoul Metropolitan Police summoned former YG Entertainment CEO Yang Hyun-Suk for questioning over gambling and for soliciting sex services for foreign investors.
The police also conducted a surprise raid on the headquarters of YG Entertainment before summoning its former CEO.
Both Yang and Seungri, booked for gambling charges, have also been banned from leaving the country as the Ministry of Justice gave a go-ahead to a travel ban.