Current status of case companies
Chapter 1 Overview
Ⅰ.
Overview of the Dosan System 5
1.
The Need for a Dosan System 5
2.
Type 6 of Bankruptcy Procedures
go.
Legal and Private Bankruptcy Procedures 6
me.
7 Types of Legal Insolvency Procedures
all.
7 Types of Private Bankruptcy Procedures
3.
Bankruptcy Procedure Options 9
Ⅱ.
Joint management procedure under the Act on Promotion of Information and Communications Network Utilization and Information Protection 11
1.
Overview 11
go.
History of the Act on the Promotion of Information and Communication Networks 11
me.
Utilization of the Act on Promotion of Information and Communications Network Utilization 11
2.
Applicable to 12
go.
Company 12
me.
Financial creditor 12
3.
Institution 13
go.
Financial Creditors' Association 13
me.
Financial Creditors' Coordination Committee 16
all.
Insolvent Business Grievance Committee 17
4.
Joint Management Procedure 18
go.
Credit Risk Assessment 19
me.
Notification of Credit Risk Assessment Results 19
all.
Objection 19
la.
Inspection and Action on Companies Showing Signs of Insolvency 19
mind.
Application for joint management procedure 20
bar.
Reporting and Confirmation of Financial Claims 21
buy.
Resolution 22 of the First Council
ah.
Initiation of joint management procedures 23
ruler.
Asset and Liability Due Diligence 23
car.
24. Preparation of plans for business improvement, etc.
card.
Agreement 26 for the Implementation of the Corporate Improvement Plan
get on.
Checking the performance of the agreement 28
green onion.
Evaluation and Disclosure of Joint Management Procedures 28
under.
Suspension and Termination of Joint Management Procedures 29
5.
Management Procedures of the Main Creditor Bank 31
6.
Legal Status of Financial Creditors 31
go.
Financial Creditor's Liability for Damages 31
me.
Dissenting creditor's right to demand purchase of debt 31
7.
Financial Services Commission's Supervision of Bond Financial Institutions 33
8.
The Relationship Between Joint Management Procedures and Rehabilitation Procedures 34
go.
Whether payment can be denied during the joint management procedure 34
me.
Linking the Joint Management Procedure and the Rehabilitation Procedure 34
Ⅲ.
Overview of the Rehabilitation Process 35
1.
The Significance of Rehabilitation Procedures 35
2.
Flow of the Rehabilitation Procedure 36
go.
Application for commencement of rehabilitation proceedings 37
me.
Preservation measures, suspension/cancellation orders, and comprehensive prohibition orders 37
all.
Cost Prepayment Order 38
la.
Representative interrogation and on-site verification 38
mind.
Decision on commencement of rehabilitation proceedings 38
bar.
Confirmation of rehabilitation claims, etc. 39
buy.
Investigation of the debtor's financial status and evaluation of corporate value 39
ah.
Maintenance and Securing of Debtor's Property 40
ruler.
40 meetings of stakeholders for management reports, etc.
car.
Submission of rehabilitation plan 41
card.
41. Special investigation date and meeting of stakeholders for review and resolution of rehabilitation plan
get on.
Implementing the Recovery Plan 41
green onion.
Termination of rehabilitation proceedings 42
3.
Recent Trends in Rehabilitation Procedures 42
go.
Fast-Track Corporate Restructuring Procedure 42
me.
Small and Medium Business Rehabilitation Consulting 43
all.
Preliminary Plan Rehabilitation Procedure 45
la.
Self-Restructuring Program 46
mind.
Sale & Lease Back 47
[Practical Tip] Criteria for Appointing an Application Agent and Accounting Firm 48
[Practical Tips] 49 Criteria for Choosing a Workout or Rehabilitation Procedure
[Practical Tip] 51 Cases of Linking Workout and Rehabilitation Procedures Using the Autonomous Restructuring Program
Chapter 2: Assessing Corporate Value
Ⅰ.
The Need for Corporate Valuation 55
Ⅱ.
Calculating Liquidation Value 56
1.
Meaning 56
2.
Liquidation Value Calculation Method 56
go.
Specific calculation method 56
me.
Whether the proceeds from the transfer of business can be recognized as liquidation value 58
Ⅲ.
Calculating Going Forward Value 58
1.
Meaning 58
2.
Calculating the Value of a Going Concern Using the Discounted Cash Flow Method 59
go.
Present value of future cash flows 60
me.
Value of Non-Operating Assets 61
Ⅳ.
Daehan Corporation's corporate value 62
1.
Daehan's liquidation value: 62
go.
Daehan's actual value 62
me.
Daehan's liquidation value: 64
2.
Daehan Corporation's going concern value 67
go.
Future Business Plan and Profit and Loss Estimation 67
me.
Daehan Corporation's going concern value 71
Chapter 3 Application for commencement of rehabilitation proceedings
Ⅰ.
Reason for application 79
1.
In case the debt due cannot be repaid without causing significant disruption to the continuation of the business (Inability to repay: Article 34, Paragraph 1, Item 1) 79
2.
If there is a concern that the debtor may face bankruptcy (bankruptcy concern: Article 34, Paragraph 1, Subparagraph 2) 80
3.
Relationship between applicants 80
4.
Clarification of the facts underlying the application 81
Ⅱ.
Applicant 81
1.
Classification of applicants by reason of application 81
2.
Debtor 81
go.
Whether a resolution of the board of directors of a joint stock company is required 82
me.
83 If there is a provision in the articles of incorporation requiring a resolution at a general shareholders' meeting
3.
Creditors and Shareholders/Equity Holders 83
go.
When the debtor is a joint stock company or limited company 83
me.
84 When the debtor is not a joint stock company or limited company
all.
Clarification of the amount of the debt, etc. 84
la.
Public Interest Creditor's Application 85
mind.
Order 85 to submit information to creditors, etc.
4.
Application for commencement of rehabilitation proceedings for a company undergoing liquidation or declared bankrupt 86
Ⅲ.
Jurisdiction and Transfer 86
1.
Jurisdiction 86
go.
Jurisdiction 87
me.
Land Jurisdiction 87
all.
Jurisdiction over things 90
la.
90 years of jurisdiction as the standard
2.
Transfer 90
go.
Reason for transfer 90
me.
Effect of transfer 91
Ⅳ.
Application information and attached documents 91
1.
Written application 91
2.
Application information 92
3.
Attachment 93
go.
Documents related to the debtor's business status and organization 93
me.
Documents related to assets and liabilities 93
all.
94 Information on applicant qualifications, etc.
la.
Name and address of the supervisory administrative agency, etc. 94
[Application for commencement of rehabilitation proceedings for Daehan Corporation] 95
V.
Cost prepayment 112
Ⅵ.
Representative interrogation and on-site verification 113
1.
Representative Interrogation 113
2.
Field Verification 114
Ⅶ.
Investigation before commencement of rehabilitation proceedings 114
1.
Meaning 114
2.
Investigation period 115
3.
Pre-initiation investigation 115
[Practical Tip] The Importance of Pre-Strategy Planning 116
[Practical Tip] Should the CEO Conduct Parallel Rehabilitation Procedures? 118
[Practical Tip] Cash and other necessary items required at the rehabilitation process initiation application stage 119
[Practical Tip] When to File a Rehabilitation Application 121
[Practical Tip] The Need to Maintain Security for Rehabilitation Procedure Applications 122
Chapter 4 Preservation of the Debtor's Property
Ⅰ.
The necessity of preserving the debtor's assets before the decision to initiate rehabilitation proceedings 125
Ⅱ.
Preservation Measure 126
1.
Overview 126
go.
Meaning 126
me.
Applicant 126
2.
Preservation measures regarding business and property (consensual preservation measures) 127
go.
Preservation order issuance date 127
me.
Contents of Preservation Measures 127
3.
Management Order by Conservation Manager (Conservation Management Order) 130
go.
Meaning 130
me.
Appointment of a Conservation Manager 130
all.
The status of the conservation manager 131
la.
The Impact of Preservation Management Orders on Litigation Procedures, etc. 131
mind.
Effect of Acts Contrary to Preservation Measures 131
4.
Effect of Preservation Disposition Decision 132
5.
Change, Cancellation, and Expiration of Preservation Measures 132
6.
133 Appeal against preservation order
[Application for Preservation Measures by Daehan Co., Ltd.] 133
Ⅲ.
Suspension order, cancellation order 135
1.
Cease Order 135
go.
Meaning 135
me.
Applicant for a stay order 135
all.
Requirements for a cease-and-desist order 135
la.
Subject of the cease and desist order 136
mind.
Effect of the Suspension Order 138
bar.
Change, Cancellation, and Appeal of Suspension Order 139
2.
Cancellation Order 139
go.
Meaning 139
me.
Requirements for Cancellation Order 140
all.
Subject of cancellation order 140
la.
Effect of Cancellation Order 141
Ⅳ.
Comprehensive Injunction 141
1.
Meaning 141
2.
Requirements for a Comprehensive Injunction 142
go.
Application by interested party or ex officio 142
me.
142 If a preservation measure or preservation management order has already been made with respect to the debtor's major assets, or if a preservation measure or preservation management order is to be made simultaneously with a comprehensive injunction
all.
There must be special circumstances that may make it likely that the purpose of the rehabilitation procedure will not be fully achieved by a suspension order. 142
3.
Subject to the Comprehensive Injunction 143
4.
Effect of a Comprehensive Injunction 143
go.
Effective Date 143
me.
Prohibition and suspension of forced execution, etc. 143
all.
Suspension of the Statute of Limitations 144
la.
Cancellation Order 144
5.
144 Appeals against Comprehensive Injunctions, etc.
6.
Exclusion from application of comprehensive injunction 145
go.
Meaning 145
me.
Suspension of the Statute of Limitations 145
[Application for Comprehensive Injunction against Daehan Corporation] 146
Chapter 5 Decision on Commencement of Rehabilitation Procedures
Ⅰ.
Withdrawal of application for commencement of rehabilitation proceedings 151
Ⅱ.
Decision 152 to Dismiss Application for Initiation of Rehabilitation Procedure
1.
Reason for rejection 152
go.
Absence of a cause for initiating rehabilitation proceedings 152
me.
Existence of Necessary Grounds for Dismissal 152
all.
Application for commencement of rehabilitation proceedings for Jaedo 154
2.
Appeal against the decision to dismiss the application for commencement of rehabilitation proceedings 155
Ⅲ.
Decision on commencement of rehabilitation proceedings 156
1.
Decision on commencement of rehabilitation proceedings 156
[Decision to initiate rehabilitation proceedings for Daehan Corporation] 157
2.
160 Appeals against the decision to initiate rehabilitation proceedings
3.
Matters to be determined simultaneously with the decision to initiate rehabilitation proceedings 161
go.
Essential Decision 161
me.
Discretionary Decision 162
[Decisions on Court Permissions and Delegations] 164
[Decision on Appointment of Investigation Committee Members and Order on Investigation, Submission, and Reporting] 167
4.
Cancellation of the decision to initiate rehabilitation proceedings 169
Ⅳ.
Effect of the Decision to Initiate Rehabilitation Procedures 169
1.
Transfer of the right to perform business, the right to manage and dispose of property, and the right to be a party 169
go.
Transfer of the right to perform business and the right to manage and dispose of property 169
me.
Previous 170 of the qualifications of the parties
2.
Effect of the debtor's actions after the commencement of rehabilitation proceedings 171
go.
Debtor's actions after commencement of rehabilitation proceedings 171
me.
Acquisition of Rights after the Initiation of Rehabilitation Procedures 171
all.
Registration and filing after commencement of rehabilitation proceedings 172
la.
Payment to the debtor after the commencement of rehabilitation proceedings 172
3.
Impact on Existing Legal Relationships 173
go.
Bilateral Contract 173
me.
Continuous Supply Agreement 182
all.
Lease agreement, etc. 185
la.
Sharing Relationship 186
mind.
Redemption Rights 187
bar.
Bankruptcy termination clause 187
4.
Impact on other procedures 189
go.
Prohibition and Suspension of Applications for Initiation of Bankruptcy and Rehabilitation Procedures 189
me.
Prohibition or suspension of compulsory execution, etc. based on rehabilitation claims or rehabilitation collateral 189
all.
Prohibition and suspension of tax delinquency measures, etc. 190
la.
Effect of Prohibition or Suspension of Procedure 191
mind.
Order to continue proceedings and order to cancel proceedings 192
5.
Impact on ongoing litigation, etc. 194
go.
Suspension of proceedings 194
me.
Chapter 195 of the Litigation Procedure
all.
Suspension and Handover of Cases Continued in Administrative Offices 197
la.
Creditor Cancellation Suit, etc. 197
mind.
Subrogation Suit 197
bar.
Shareholder derivative suit 198
buy.
Claim for transfer 198
Chapter 6 Institutions of Rehabilitation Procedures
Ⅰ.
Manager 201
1.
Existing Management Manager System 201
2.
Appointment and dismissal of existing management managers 202
go.
Principle 202 of Appointment of Existing Management Manager
me.
Reasons for Appointing a Third-Party Administrator 202
all.
Dismissal of existing management 204
3.
Decision 204 on non-appointment of administrator
4.
Co-manager 205
5.
Issuance of seniority certificates, etc. 206
6.
The Manager's Position 207
7.
Administrator's Powers and Responsibilities 208
go.
Right to perform duties and right to manage and dispose of property 208
me.
Property Value Assessment and Investigation Report 211
all.
212. Qualification of parties, etc.
la.
Reporting and Inspection Rights 212
mind.
Termination of the manager's duties and obligation to report accounts 213
8.
Compensation and Special Compensation 213
go.
Conservative 213
me.
Special Compensation 213
Ⅱ.
Management Committee 213
1.
Composition 213
2.
Duties and Authority 214
go.
Article 17, Paragraph 1, Duties 214
me.
214 Work stipulated in individual regulations
all.
Delegation of Work 215
3.
Delegation of Licensing Affairs to the Management Committee 215
4.
The Need to Maintain Friendly Relations with the Management Committee 216
Ⅲ.
Restructuring Officer 216
1.
Meaning 216
2.
Introduction 216
3.
Appointment Procedure 217
4.
Status and Role 217
5.
Establishing a Relationship with the Restructuring Executive 218
[Appointment Agreement for the Restructuring Officer of Daehan Corporation] 218
Ⅳ.
Creditors' Association 223
1.
Meaning 223
2.
Composition 223
3.
Convening and Decision-making 224
4.
Task 224
go.
224. Submission of opinions to the court, etc.
me.
225 Business under provisions other than those in Article 21, Paragraph 1
5.
Request for information and explanation 225
6.
Activity cost 225
7.
Supervision of Debtors After Early Termination of Rehabilitation Procedures 226
8.
The Need to Maintain Friendly Relations with the Creditors' Council 226
V.
Investigation Committee 227
1.
Meaning 227
2.
Qualifications and Appointment of Investigation Committee Members 227
3.
Investigation Committee's Investigation Item 228
go.
Matters stipulated in Articles 90 to 92 228
me.
Opinion 229 on whether it is appropriate to proceed with rehabilitation proceedings
all.
230 Matters Ordered by the Court to be Investigated and Reported
la.
230. Matters relating to requests for information from persons seeking to lend funds to debtors.
mind.
Due diligence on debtors after approval of rehabilitation plan 231
4.
Investigation Report 231
go.
Structure and evidentiary power of the investigation report 231
me.
First Investigation Report 232
[Summary of the First Investigation Report on Daehan Corporation] 233
all.
Second Investigation Report 240
la.
Investigation Report Interim Report 241
[Practical Tips] Responding to Investigative Committee Investigations 242
Chapter 7 Securing the Debtor's Property
Ⅰ.
Debtor's property 247
1.
The Meaning of the Debtor's Property 247
2.
Scope of the Debtor's Property 248
Ⅱ.
Women's Rights 248
1.
Overview 248
go.
The Significance of Women's Rights 248
me.
Relationship with the creditor's right of rescission 249
all.
250 Exercise of the Right to Deny in the Existing Management Manager System
2.
Type 251 of Women's Rights
go.
Intentional Wife 251
me.
Crisis Denial 251
all.
Mrs. Mu Sang 252
la.
Relationships between types of wives 252
3.
Requirements for the establishment of the right of women 252
go.
General Establishment Requirements 252
me.
Individual Establishment Requirements 258
all.
Special Provisions on Acts Against Specially Related Persons Article 263
4.
Special Types of Women's Rights 265
go.
Wife's Restriction on Payment of Bills and Notes 265
me.
Denial of the conditions for establishment or counter-conditions of change of rights 266
all.
Denial of Enforcement Act 267
la.
Denial of the Successor 269
mind.
Special Provisions on Denial of Trust Acts Article 270
5.
Exercise of Women's Rights 272
go.
Persons entitled to exercise their right to renounce their wives 272
me.
Procedure for exercising the right of denial 273
all.
Exercise of the Right to Denial and Procedures for Investigating Claims 274
la.
275. Action for cancellation of fraudulent acts, etc., and denial of action
mind.
The End of Rehabilitation Procedures and the Fate of the Right to Deny 277
6.
The Effects of Exercising the Right to Vow 279
go.
Restoration 279
me.
Compensation 280
all.
Protection of the good-faith counterparty in the case of a free denial 280
la.
Wife's Opponent's Status 281
7.
Extinction and Restriction of Women's Rights 283
8.
Wife's Registration 284
[Practical Tip] Example 285 of Writing a Wife's Bill
Ⅲ.
Claims for damages against directors of a corporation, etc. 294
1.
Overview 294
2.
294 Preservation measures for the assets of corporate directors, etc.
go.
Applicants and Requirements 294
me.
Contents of Preservation Measures 295
all.
Method of Appeal 295
3.
296 Investigation and final judgment on claims for damages against directors of a corporation, etc.
go.
Initiation of the investigation and confirmation trial procedure 296
me.
Investigation and Confirmation Trial Procedure 297
all.
Objection to the final judgment on the right to claim damages, etc. 298
Ⅳ.
Redemption voucher 300
1.
Meaning 300
2.
300 Right of redemption recognized by substantive law
3.
Right of redemption recognized under the Debtor Rehabilitation Act 302
go.
Right of redemption of goods in transit 302
me.
Consignment seller's right of repurchase 303
all.
Alternative redemption rights 303
4.
Exercise of the right of redemption 304
V.
Limitation of Set-off 304
1.
Set-off in Rehabilitation Proceedings 304
2.
Set-off by rehabilitation creditors, etc. 306
go.
Requirements for Set-off 306
me.
Exercise of the right of set-off 307
all.
Effect of Exercising the Right of Set-off 308
la.
Set-offs and deductions 308
3.
Administrator's Setoff 310
4.
Prohibition of Set-off 310
go.
The Purpose of the Prohibition of Set-Off 310
me.
311 When set-off is prohibited
all.
Effect of a set-off contrary to the prohibition of set-off 314
Chapter 8 Rights of Interested Parties in Rehabilitation Procedures
Ⅰ.
Rehabilitation bond 317
1.
The Significance of Rehabilitation Bonds 317
2.
Requirements for Rehabilitation Claims 318
go.
318 Claims against the Debtor
me.
Property Claims 318
all.
Claims arising from causes prior to the commencement of rehabilitation proceedings 319
la.
Claims subject to enforcement 322
mind.
Claims without material collateral 322
3.
Rehabilitation claims after commencement of rehabilitation proceedings 322
go.
Wife's claim for reimbursement of the other party's value 322
me.
Claim for damages due to cancellation or termination of a bilateral contract due to non-performance by both parties 323
all.
323 Claims of a bona fide payer of bills of exchange, etc.
la.
Claim for damages due to failure to demand payment of rent, etc. 323
mind.
324 Right to claim balance from other party upon termination of mutual calculation
bar.
Interest, etc. after commencement of rehabilitation proceedings 324
4.
Classification and Ranking of Rehabilitation Claims 325
go.
Overview 325
me.
General priority rehabilitation claims (Article 217, Paragraph 1, Subparagraph 2) 325
all.
General Rehabilitation Claims (Article 217, Paragraph 1, Item 3) 325
la.
Subordinated Rehabilitation Bond 326
5.
Tax Claims, etc. 326
go.
Overview 326
me.
Distinction between Rehabilitation Bonds and Public Interest Bonds 328
all.
Special Provisions on Tax Claims, etc. Article 328
la.
Status of tax payment guarantee insurer who has subrogated tax claims 333
mind.
Fines, etc. before commencement of rehabilitation proceedings 334
6.
Rehabilitation Claims and Multiple-Party Debt Relationships 335
go.
Overview 335
me.
336 When the debtor is fully liable for performance together with others
all.
All rights of the obligor to future plans and subrogation of the payer 338
la.
340 If the debtor assumes a guaranteed debt
mind.
341 In case of unlimited or limited liability for the debts of a corporation
7.
Status of Rehabilitation Creditors in Rehabilitation Procedures 341
go.
Prohibition on payment of rehabilitation claims 341
me.
Exception to the Principle of Prohibition of Payment 343
all.
Participation in rehabilitation proceedings 345
Ⅱ.
Rehabilitation Security 347
1.
Meaning 347
2.
Requirements for a Rehabilitation Security Right 348
go.
Scope of Claims 348
me.
348 Security interests existing on the debtor's property at the time of commencement of rehabilitation proceedings
all.
Types of Liens 349
la.
349 The scope of the security secured by a lien
3.
Types of Rehabilitation Security Rights 350
go.
Kindergarten 350
me.
Lien 351
all.
Mortgage 351
la.
Mortgage 351
mind.
Assignment of Lien 352
bar.
Registered mortgage 355
buy.
Security interest under the Movable Property Security Act 355
ah.
Jeonsewon 355
ruler.
Preferential Privilege 355
car.
Sale of Personal Property with Reservation of Ownership 356
card.
Lease receivables 357
get on.
Bill of Exchange Accident Reporting Security Deposit 359
green onion.
Trust under the Trust Act 360
4.
The Status of Rehabilitation Secured Creditors in Rehabilitation Proceedings 362
go.
Status of Rehabilitation Secured Creditors After the Decision to Initiate Rehabilitation Procedures 362
me.
Status of Rehabilitation Secured Creditors after Rehabilitation Plan Approval Decision 363
5.
Rehabilitation Security and Subrogation 363
Ⅲ.
Stocks and Equity Rights 365
1.
Impact of the Decision to Initiate Rehabilitation Procedures on Shareholders and Equity Holders 365
2.
Status of Shareholders and Equity Holders in Rehabilitation Procedures 365
3.
Convertible bonds and bonds with warrants 366
Ⅳ.
Public Interest Bonds and Public Interest Collateral 367
1.
Public Interest Bond 367
go.
The Significance of Public Interest Bonds 367
me.
Public interest bonds under Article 179, Paragraph 1, 368
all.
Public interest claims other than those specified in Article 179, Paragraph 1 379
la.
Public Creditor Status 380
2.
Public Interest Security Rights 385
V.
Post-opening other bonds 386
1.
Meaning 386
2.
Handling in Rehabilitation Procedures 387
go.
387 Prohibition on payment until the expiration of the rehabilitation plan payment period
me.
Restrictions on enforcement, etc. 387
all.
Treatment in Rehabilitation Plans 387
Chapter 9 Investigation and Confirmation of Rehabilitation Claims, etc.
Ⅰ.
Overview 391
Ⅱ.
Submission of a list of rehabilitation creditors, etc. 392
1.
The significance and purpose of the system for submitting lists of rehabilitation creditors, etc. 392
2.
392 Subjects to be listed on the list of rehabilitation creditors, etc.
3.
392. Preparation and submission of list of rehabilitation creditors, etc.
4.
Method of preparing a list of rehabilitation creditors, etc. 394
go.
Matters to be included in the list of rehabilitation creditors (Article 147, Paragraph 2, Item 1) 394
me.
Matters to be included in the list of rehabilitation secured creditors (Article 147, Paragraph 2, Subparagraph 2) 395
all.
Matters to be included in the list of shareholders and equity holders (Article 147, Paragraph 2, Subparagraph 3) 395
la.
Items to be included in the list of claims for fines, taxes, etc. 395
mind.
How to Make a List 396
5.
Effect of Submitting a List of Rehabilitation Creditors, etc. 398
go.
Statute of limitations suspension 398
me.
Report Agenda 399
all.
Determination of rights and amount of voting rights 399
la.
Changes and corrections to the list of rehabilitation creditors, etc. 400
[List of Daehan Corporation's Rehabilitation Creditors, etc.] 401
Ⅲ.
Report of Rehabilitation Claims, etc. 415
1.
Report of Rehabilitation Claims, etc. 415
2.
Report 415
go.
Reporting Matters for Rehabilitation Creditors 415
me.
Report by Rehabilitation Secured Creditor 415
all.
Reporting Matters for Shareholders and Equity Holders 416
la.
Preliminary Report 416
3.
Reporting Subject, Respondent, and Method 417
4.
Effect of Report 417
go.
Participation in rehabilitation proceedings 417
me.
Statute of limitations suspension 418
5.
Reporting period for rehabilitation claims, etc. 419
go.
Reporting Period and Investigation Method 419
me.
Reporting of claims for fines, taxes, etc. 419
all.
Report after the reporting period 419
la.
Additional Report of Stocks and Shares 424
mind.
Change of Report Name 425
bar.
Changes to report contents 425
buy.
426 In case of dispute over the attribution of the reported claim
ah.
Preparation of the rehabilitation creditor list, rehabilitation secured creditor list, and shareholder/equity holder list 426
6.
Reporting and Confirmation of Claims for Fines, Taxes, etc. 427
go.
Reporting of claims for fines, taxes, etc. 427
me.
Confirmation of claims for fines, taxes, etc. 427
Ⅳ.
Investigation of Rehabilitation Claims and Rehabilitation Collateral 428
1.
The Significance of Debt Investigation 428
2.
Subject of the bond investigation 428
3.
Investigation period and special investigation date 429
go.
Investigation Methods for Rehabilitation Claims, etc. 429
me.
Investigation period 430
all.
Special investigation date 430
4.
Subject and Content of Debt Investigation 431
5.
431. Preparation of the surname of the city
go.
How to write a surname? 431
me.
How to write a poem/wife's statement 432
all.
Poetry? Madam Poetry Precautions 432
[Daehan Corporation's City and Lady Table] 437
6.
Confirmation of rehabilitation claims, etc. and recording of rehabilitation creditor lists, etc. 452
go.
Confirmation of rehabilitation claims, etc. and recording of rehabilitation creditor lists, etc. 452
me.
Effect of the description of the rehabilitation creditor list, etc. 452
7.
Enforcement by means of rehabilitation creditors' certificates, etc. 454
go.
454 In cases where a decision to disapprove a rehabilitation plan or a decision to terminate rehabilitation procedures prior to approval is confirmed
me.
454 In case the decision to terminate rehabilitation proceedings is confirmed after approval
all.
455 when the rehabilitation process is concluded
8.
Procedures after the bond investigation 455
go.
Notice of Objection 455
me.
Withdrawal of Objection 455
V.
Confirmation of Rehabilitation Claims and Rehabilitation Collateral 456
1.
The Purpose of the System 456
2.
Debt Investigation Confirmation Trial 457
go.
Meaning 457
me.
Party 458
all.
Application period 458
la.
Subject of Judgment and Limitations of Claims 459
mind.
Psychology and Trial 460
bar.
Effect of a final judgment on debt investigation 461
[Decision on Confirmation of Rehabilitation Security Investigation] 462

3.
Objection to the final judgment on the investigation of claims 464
go.
Overview 464
me.
Party 465
all.
Period of filing 466
la.
Jurisdiction 466
mind.
Litigation 466
bar.
Special Rules for Arguments and Trials 467
buy.
Trial 467
4.
468. The Handling of Litigation Concerning Objection Claims
go.
Overview 468
me.
Water system application 468
all.
Post-Civil War Litigation 470
la.
Measures in case the cause of the water supply disappears 471
5.
Confirmation of rehabilitation claims, etc. with enforceable writ of execution or final judgment 472
go.
Overview 472
me.
Executory writ or final judgment 472
all.
Procedure for Confirmation of Objection Claims 473
la.
Objection and period of application 473
mind.
Special Rule of Argument 474
6.
474. Effect of the Recording of the Results of Litigation and Judgments Regarding the Confirmation of Rehabilitation Claims, etc.
go.
474. Recording of the results of litigation regarding the confirmation of rehabilitation claims, etc.
me.
Effect of judgment on lawsuit regarding confirmation of rehabilitation claims, etc. 475
all.
Effect of a final judgment on debt investigation 475
7.
Determination of the value of the lawsuit 476
8.
Reimbursement of Litigation Costs 476

Chapter 10 Meeting of stakeholders for managerial reports, etc.
Ⅰ.
Overview 481
Ⅱ.
Meeting of stakeholders for managerial report 482
1.
Criteria for determining whether to hold an event and the timing of holding an event 482
2.
Procedure 483
Ⅲ.
Alternative Procedure 483
1.
Selection criteria for alternative procedures 483
2.
Notice of Key Points 485
go.
Notice 485
me.
Notification subject 485
all.
Method and timing of notification 485
3.
Information Session 485
go.
485 people attending the information session
me.
486. Conducting a briefing session for stakeholders
all.
Report 486 after the briefing session
4.
Any other appropriate measures deemed necessary by the court 487
Chapter 11 Rehabilitation Plan
Ⅰ.
Submission of Rehabilitation Plan 491
1.
Rehabilitation Plan 491
go.
Rehabilitation Plan and Rehabilitation Plan 491
me.
Legal Nature and Interpretation of Rehabilitation Plans 492
2.
492. Person authorized to prepare and submit a rehabilitation plan
3.
493 Period for submission of rehabilitation plan
4.
Preliminary Plan Rehabilitation Procedure 493
go.
Meaning 493
me.
Submission of Preliminary Plan 494
all.
Documents to be submitted with the preliminary plan 495
la.
The Effect of Submitting a Preliminary Plan 496
Ⅱ.
Principles for Drafting a Rehabilitation Plan 496
1.
Principle of Fair and Equitable Difference 496
go.
Meaning 496
me.
The Meaning of Fair and Equitable Difference 497
all.
Reduction of Rights of Rehabilitation Creditors and Shareholders - Relative Equity Ratio Law 498
la.
Specific criteria for judging the principle of fair and equitable differentiation 499
2.
Principle of Equality 500
go.
Meaning 500
me.
Exceptions to the Principle of Equality 502
3.
Performance Possibility 506
4.
Principle 507 of Guaranteed Liquidation Value
go.
Meaning 507
me.
Content 507
all.
Related Issue 509
Ⅲ.
Contents of the Rehabilitation Plan 513
1.
Item 513 of the rehabilitation plan
go.
Required information (absolute information) 513
me.
Relative description 515
all.
Optional entry 518
2.
520 If there is an agreement among creditors regarding the order of payment
3.
Step 521 of Drafting a Rehabilitation Plan
go.
Establishing a Funding Plan 521
me.
Establishment of Rights Change Regulations 523
Ⅳ.
Rehabilitation Plan and Debt Conversion 523
1.
The Significance and Legal Nature of Conversion of Capital Investments 523
go.
Meaning 523
me.
Legal personality 524
2.
Taxation Issues on Debt Forgiveness Gains from Equity-Share Conversion 525
3.
Conversion of Equity and Guaranteed Debt 526
[Daehan Corporation's Rehabilitation Plan] 528
[Practical Tips] How to Maintain CEO Control During the Restructuring Plan Draft Stage 638
[Practical Tips] Establishing a Debt Repayment Plan 642
V.
Amendment and Change of Rehabilitation Plan 643
1.
Meaning 643
2.
Amendment to the Rehabilitation Plan 643
go.
Amendment 643 by the Rehabilitation Plan Submitter
me.
Amendment 644 by court order of amendment
3.
Amendment to the Rehabilitation Plan 645
4.
Exclusion from the Rehabilitation Plan 646
go.
Meaning 646
me.
Reason 646 for exclusion from rehabilitation plan
all.
Effects of Excluding the Rehabilitation Plan 647
la.
Special Rule 647 on Exclusion from Rehabilitation Plans
Ⅵ.
Liquidation Rehabilitation Plan 649
1.
Meaning 649
2.
Requirements for Drafting a Liquidation-Type Rehabilitation Plan 651
go.
Court Permission 651
me.
Substantive Requirements 651
3.
Review and Resolution of the Liquidation-Type Rehabilitation Plan 652
Chapter 12 Meeting of stakeholders for review and resolution of the rehabilitation plan
Ⅰ.
Overview 657
1.
Meaning 657
2.
Preparations before the meeting of related parties 657
3.
Special investigation date for rehabilitation claims, etc. that have been supplemented later: 658
[Summary of the Second Investigation Report on Daehan Corporation] 660
Ⅱ.
664 Meeting of Stakeholders to Review the Rehabilitation Plan
Ⅲ.
664 Meeting of Stakeholders for Resolution of Rehabilitation Plan
1.
Meaning 664
2.
Statement of the person assuming debt or providing collateral for rehabilitation 665
go.
665. Description of the rehabilitation plan of the debtor, etc.
me.
Statement at a meeting of debtors and other related parties 666
3.
Category 666 of the poem
4.
Voting Rights 667
go.
Scope and Exercise of Voting Rights 667
me.
Objection to voting rights 669
all.
670 Interested parties who do not have voting rights or are unable to exercise voting rights
la.
Proxy Voting and Non-Unified Voting 673
5.
Resolution Procedure 674
6.
Requirement 675
go.
Article 675 of the Rehabilitation Creditor Act
me.
Article 675 of the Rehabilitation Secured Creditor Act
all.
Article 676 of the Shareholders' Rights Act
7.
Time Limit for Resolution of Rehabilitation Plan 676
go.
The Time of Resolution 676
me.
Limitation of the voting period 677
8.
Designation of a continuation date 678
go.
Meaning 678
me.
Requirements for the continuation of the meeting of stakeholders 678
all.
Deadline for approval of rehabilitation plan in case of extension of deadline 679
[Daehan Corporation's related party meeting materials] 680
[Daehan Co., Ltd. Attendance and Voting] 697
Ⅳ.
Written Resolution System 706
1.
Meaning 706
2.
Special provisions relating to written resolutions 707
go.
707 Non-convening of the meeting of related parties for psychological reasons
me.
No supplementary reports allowed 707
all.
Rehabilitation plan cannot be modified 707
la.
Decision on Classification of Groups 707
mind.
708 Consent of the person who assumes the debt or provides collateral for rehabilitation
bar.
Decision on whether to approve or reject the rehabilitation plan 708
buy.
Designation of a continuation date 709
ah.
Abolition of the rehabilitation process 709
[Practical Tips] Tip 710 for Obtaining Creditor Consent
Chapter 13 Approval of Rehabilitation Plan
Ⅰ.
Decision on Approval of Rehabilitation Plan 713
Ⅱ.
Rehabilitation Plan Approval Requirement 714
1.
Review and judgment of rehabilitation plan approval requirements 714
2.
Positive requirements for approval of a rehabilitation plan (Article 243, Paragraph 1) 715
go.
The rehabilitation procedure or rehabilitation plan must comply with the provisions of the law (No. 1) 715
me.
The rehabilitation plan must be fair, equitable, and feasible (No. 2) 719
all.
Resolution on the rehabilitation plan must have been made in good faith and fair manner (No. 3) 720
la.
Satisfying the principle of liquidation value guarantee (No. 4) 720
mind.
Regarding a rehabilitation plan including a merger, etc., there must have been a resolution to approve the merger agreement, etc. at the general shareholders' meeting or general meeting of employees of another company (No. 5) 721
bar.
Matters requiring administrative agency approval, authorization, license, or other dispositions in the rehabilitation plan shall not differ significantly from the administrative agency's opinion (No. 6) 721
buy.
Regarding a rehabilitation plan that includes a comprehensive exchange of stocks, there must be a resolution to approve the comprehensive exchange agreement for stocks at the general shareholders' meeting of another company (No. 7) 722
3.
Negative requirements for rehabilitation plan approval 722
go.
Arbitrary Non-Recognition Condition 723
me.
Necessary conditions for non-approval 723
all.
Order 724 to provide information or submit materials
la.
Penalty 724
[Decision on Approval of Daehan Corporation's Rehabilitation Plan] 725
Ⅲ.
Approval in case of unconsented clause 726
1.
The Significance of the Rights Protection Clause System 726
2.
Requirements for establishing rights protection clauses 726
go.
726 disagreement among some members
me.
Establishment of Rights Protection Clauses 727
all.
Fulfillment of authorization requirements 728
la.
Discretionary power of authorization 728
3.
Method of establishing rights protection provisions (Article 244, Paragraph 1) 729
go.
Rehabilitation secured creditor 729
me.
Rehabilitation creditor 730
all.
Shareholders/Equity Holders 731
4.
Pre-emptive Protection Clause 731
Ⅳ.
Effect of Rehabilitation Plan Approval Decision 732
1.
Effective Date of the Rehabilitation Plan 732
2.
Disclaimer and Termination of Rights 733
go.
Meaning 733
me.
Rights subject to exemption and termination 733
all.
The real power of the primary debtor's rehabilitation claim and the secondary nature of the guaranteed debt 737
3.
Change of Rights 737
4.
Scope of the Rehabilitation Plan 738
go.
738. The scope of the rehabilitation plan's effect on the individuals affected.
me.
740 Persons not subject to the effects of the rehabilitation plan
5.
Latency of Suspended Proceedings 745
go.
Subject to lapse 745
me.
Meaning of Effectiveness 745
all.
Handling of Foundation Bonds 746
6.
Description of the rehabilitation creditor list and its effect 746
go.
746 Description of Rehabilitation Creditors' List, etc.
me.
Effect of the description of the rehabilitation creditor list, etc. 746
all.
Enforcement by means of rehabilitation creditors' certificates, etc. 748
la.
Special provisions and suspension of the statute of limitations 749
V.
749 Appeals against the decision on approval of the rehabilitation plan
1.
Immediate Appeal 749
go.
Right to immediate appeal 750
me.
Immediate appeal period 752
all.
Deposit Order 752
2.
Effect of immediate appeal and stay of execution 752
go.
Effect of immediate appeal and stay of execution 752
me.
Grounds for immediate appeal and scope of review 753
all.
Provisional injunction to suspend the execution of rehabilitation plan, etc. 753
3.
Cancellation of Rehabilitation Plan Approval Decision 753
4.
Confirmation of the decision on whether or not to approve the rehabilitation plan 754
go.
Confirmation date 754
me.
Effect of Confirmation 754
Chapter 14 Implementation and Changes to the Rehabilitation Plan
Ⅰ.
Implementation of the Rehabilitation Plan 759
1.
Implementation of the Rehabilitation Plan 759
go.
Person in charge of implementing the rehabilitation plan 759
me.
Business Plan Implementation 759
all.
Implementing the Asset Sale Plan 759
la.
Payment of rehabilitation claims, etc. 760
mind.
760 Execution of other matters stipulated in the rehabilitation plan
2.
Order to Execute Rehabilitation Plan and Order to Provision Collateral 761
go.
Rehabilitation Plan Implementation Order 761
me.
Order to Provide Collateral 761
3.
Due Diligence on Debtors 762
Ⅱ.
Changes to the Rehabilitation Plan 762
1.
Significance of Changing the Rehabilitation Plan 762
2.
Requirements for Changing the Rehabilitation Plan 763
go.
Applicant for Change in Rehabilitation Plan 763
me.
Timing of Rehabilitation Plan Change 763
all.
763 Unavoidable circumstances and the need for change
la.
Subject of change 765
3.
Procedure for Changing the Rehabilitation Plan 765
go.
765 If the requirements for a change in the rehabilitation plan are not met
me.
765 if the requirements for changing the rehabilitation plan are met
all.
Effective Date 767
4.
Voting Rights and Special Provisions in Reorganization Plan Amendments 767
go.
Category 767 of the poem
me.
Voting rights 768
all.
Resolution Special Provision 768
5.
Appeal Procedure 769
go.
Immediate appeal against decision to change rehabilitation plan or decision to approve changed rehabilitation plan 769
me.
769 Dissatisfaction in case of no change
[Practical Tip] Case 770: Changing Rehabilitation Plans
Chapter 15 Rehabilitation Procedures and M&A
Ⅰ.
Overview 775
1.
The Significance of M&A 775
2.
The Necessity of M&A in Rehabilitation Procedures 776
3.
Classification of M&A in Rehabilitation Procedures 777
go.
Classification by method 777
me.
Classification by propulsion period 779
Ⅱ.
779 Information provided to potential buyers
1.
Meaning 779
2.
Procedure 780
Ⅲ.
M&A 781 after rehabilitation plan approval
1.
M&A Subjects and Timing of Promotion 781
go.
M&A Subject 781
me.
The Role of the Creditors' Council 781
2.
M&A Procedure 782
go.
Principles of M&A Process 782
me.
Procedure Overview 782
all.
Selection of a sales manager 782
la.
Due diligence and sale preparation by the sales manager 783
mind.
Selecting the Acquirer 785
bar.
Detailed due diligence and adjustment of acquisition price 787
buy.
Conclusion of acquisition contract 787
ah.
Payment of acquisition price 788
3.
Rehabilitation Plan Change 788
Ⅳ.
M&A 789 before rehabilitation plan
1.
M&A 789 before rehabilitation plan approval after commencement of rehabilitation proceedings
go.
789 Approval for M&A before rehabilitation plan approval
me.
Sale Procedure 789
2.
M&A 790 that took place before the commencement of rehabilitation proceedings
V.
Special Rules for Pre-Announcement Purchasers - Stalking Horse Bid 791
1.
Overview 791
2.
Procedure 791
go.
791 Procedures for Selecting a New Acquirer
me.
Conditional acquisition agreement signed 792
all.
Status of prospective acquirer prior to announcement 792
la.
Selection of the final buyer 793
Ⅵ.
793 Transfer of business prior to rehabilitation plan
1.
Meaning 793
2.
Requirements for Transfer of Business Prior to Rehabilitation Plan 794
go.
Transfer of all or a significant part of a trade or business 794
me.
794 What is needed for debtor rehabilitation
all.
795 days before the rehabilitation plan is approved after the rehabilitation procedure is initiated
3.
Procedure for Transfer of Business Prior to Rehabilitation Plan Approval 795
go.
Opinion inquiry 795
me.
796 Designation of the method of use of the permit decision and transfer fee
all.
Decision 796 in lieu of resolution of general shareholders' meeting
4.
Effect of business transfer without court approval 797
[Practical Tips] How to Maintain CEO Control During M&A Processes (798)
Chapter 16 Termination of Rehabilitation Procedures
Ⅰ.
Conclusion of rehabilitation proceedings 803
1.
Meaning 803
2.
Requirements for Concluding Rehabilitation Procedures 804
go.
Payments must have commenced in accordance with the rehabilitation plan (positive requirement) 804
me.
It will not be recognized as impeding the implementation of the rehabilitation plan (negative requirement) 804
3.
Appeal against the decision to terminate rehabilitation proceedings 805
4.
Effect of Concluding Rehabilitation Procedures 805
go.
Termination of Administrator's Authority and Restoration of Debtor's Authority 805
me.
Extinction of procedural restraints on debtors 806
all.
Elimination of restrictions on individual exercise of rights 806
la.
Obligation to Execute Rehabilitation Plan 806
mind.
Special provisions on the appointment of directors, etc. Article 806
[Decision to Conclude Rehabilitation Procedures for Daehan Corporation] 807
Ⅱ.
Abolition of rehabilitation proceedings 808
1.
Meaning 808
2.
809 Reorganization Plan Approval and Prior Abolition
go.
Abolition under Article 286, Paragraph 1, Article 809
me.
Abolition under Article 286, Paragraph 2, Article 810
all.
Abolition under Article 287 810
3.
811 abolished after rehabilitation plan approval
go.
Meaning 811
me.
Hearing opinions from stakeholders 812
4.
Announcement 812
5.
812 Appeals Against the Decision to Terminate Rehabilitation Procedures
go.
Immediate Appeal 812
me.
Effect of Filing an Appeal 813
all.
813. Transition to bankruptcy proceedings
6.
Effect of the decision to terminate rehabilitation proceedings 813
go.
Termination of rehabilitation proceedings 814
me.
Retroactivity of the effect 815
all.
Impact on ongoing proceedings 815
la.
The Impact of the Abolition of Rehabilitation Procedures on the Rights Determination Procedure 816
mind.
Effect of the description of the rehabilitation creditor list, etc. 819
Ⅲ.
Transition and Continuation of Bankruptcy Proceedings 820
1.
Bankruptcy declaration and continuation of bankruptcy proceedings due to the abolition of rehabilitation proceedings, etc. 820
go.
Debtors who have not been declared bankrupt 820
me.
Debtor 821 declared bankrupt
2.
Effect on bankruptcy proceedings 822
go.
Agenda 822: Application for Suspension of Payment and Bankruptcy
me.
Public Interest Bonds Foundation Bonds Agenda 823
all.
Agenda 823: Reporting bankruptcy claims, etc.
la.
Suspension of Litigation and Settlement 824
mind.
Determining the Scope of Valid Actions 825
[Practical Tip] How to Maintain CEO Control During the Final Stage of Rehabilitation Procedures 826
Chapter 17: Simplified Rehabilitation Procedures
Ⅰ.
Overview 829
1.
Introduction Background 829
2.
Application of the Rehabilitation Procedure Regulations 830
3.
Relationships between rehabilitation procedures 830
Ⅱ.
Application for commencement of simplified rehabilitation proceedings 830
1.
Jurisdiction 830
go.
Land jurisdiction 830
me.
Jurisdiction over things 831
all.
Special Case 831
2.
Applicant - Small Business Income 831
go.
The significance of small business income earners 831
me.
832. Time for determining whether a person is a small business owner
all.
Judgment on Total Debt 832
Ⅲ.
Submission of Application for Initiation of Simple Rehabilitation Procedure 834
1.
Application information 834
2.
Attachment 834
3.
835 Prepayment orders, preservation measures, suspension/cancellation orders, comprehensive prohibition orders, etc.
Ⅳ.
Decision on whether to initiate simplified rehabilitation proceedings 835
1.
Decision on Commencement of Simple Rehabilitation Procedure No. 835
2.
Decision 835 to Dismiss Application for Initiation of Simple Rehabilitation Procedure
go.
Decision 835 to Dismiss Application for Initiation of Simple Rehabilitation Procedure
me.
Decision 836 on Dismissal of Application for Simple Rehabilitation Procedure and Initiation of Rehabilitation Procedure
all.
Decision to Dismiss Application for Initiation of Simple Rehabilitation Procedure and Decision to Initiate Rehabilitation Procedure 836
3.
Effect of Decision to Initiate Simple Rehabilitation Procedures 836
V.
Special Provisions for the Simplified Rehabilitation Procedure 836
1.
Principle of Non-Appointment of Administrators 836
2.
Appointment of a temporary investigation committee member 837
Ⅵ.
Abolition of the simplified rehabilitation procedure 838
1.
838. Termination due to failure to meet eligibility requirements for simplified rehabilitation proceedings
2.
Abolition for general reasons 839
Ⅶ.
Continuation of rehabilitation proceedings 839
1.
Overview 839
2.
The general interest of creditors and the possibility of debtor rehabilitation 840
3.
Effect of the Decision to Proceed with Rehabilitation Procedures 840
Ⅷ.
Relaxation of requirements for approval of rehabilitation plans 841
Ⅸ.
Features of the Practical Operation of the Simple Rehabilitation Procedure 842
1.
Expedited Procedure 842
2.
Non-constitution of the creditors' meeting 842
3.
Utilization of Restructuring Officers 842
Chapter 18 Listed Corporations and Rehabilitation Procedures
Ⅰ.
Overview 847
1.
Listing and Delisting 847
2.
The Legal Nature of Listing Agreements and Delistings 848
Ⅱ.
Securities Listing Regulation 848
1.
Basis for Enacting Securities Listing Regulations 848
2.
The Legal Nature of Securities Listing Regulations 849
Ⅲ.
Management item designation 850
1.
The significance of designating management items 850
2.
Reason for designation as a management item 850
go.
850 Designation of management items due to application for commencement of rehabilitation proceedings or bankruptcy
me.
851. Designation and release of management items
all.
Report of reasons for designation of management items, etc. 851
3.
Suspension of Trading 851
4.
Objection to designation of managed items 852
Ⅳ.
Delisting 852
1.
Formal delisting 853
go.
Reasons for Formal Delisting - Auditor's Opinion Not Reached 853
me.
Formal delisting procedure 856
2.
Delisting 859 following substantive review of listing eligibility
go.
The significance of delisting following a substantive review of listing eligibility 859
me.
Reason 859 for substantive review of listing eligibility
all.
Substantive examination of listing eligibility procedures 863
3.
Judicial Remedies for Delisting Decisions 868
[Practical Tips] 870 Cases of Overcoming Delisting Crisis through Rehabilitation Procedures


Reference 871
Search 877

According to the results of handling corporate rehabilitation cases in national rehabilitation courts in 2020 in the 2021 Judicial Yearbook, among the 870 cases prior to the decision to initiate rehabilitation procedures, 614 cases were initiated, 60 cases were dismissed, and 196 cases were other cases. Among the 637 cases after the initiation of rehabilitation procedures but before approval, 397 cases were approved for rehabilitation plans, 238 cases were abolished or canceled for rehabilitation procedures, and 2 cases were other cases. Among the 399 cases for which rehabilitation plans were approved, 315 cases were concluded for rehabilitation procedures, and 84 cases were abolished for rehabilitation procedures.
Based on these statistics, it can be estimated that only about 35-45% of companies that recently filed for rehabilitation proceedings successfully completed the rehabilitation proceedings after receiving a decision to terminate the proceedings.
Of course, if a company that lacks economic viability and has no chance of recovery files for rehabilitation proceedings, it is natural that it will be forced out midway.
However, despite the possibility of rehabilitation, it is not uncommon for companies to have their rehabilitation application rejected or to be forced out midway after the decision to initiate rehabilitation proceedings due to procedural misfortune and immature business practices.
This is unfortunate for the company and its employees, not in the interests of creditors in general, and a loss to society as a whole.
Meanwhile, most CEOs of bankrupt companies desire to maintain their management rights as much as the company's recovery.
However, in the current rehabilitation practice, where the entire amount of debt that cannot be repaid in cash is converted into equity, and the relative priority theory and relative equity ratio method are adopted in accordance with the principles of fairness and equity, thorough preparation is necessary for the CEO to maintain management rights.
Nevertheless, there are some CEOs who filed for rehabilitation without any specific strategy and ended up reviving their companies, only to lose their management rights.
This too cannot but be a regrettable thing.
The authors have handled a significant number of corporate rehabilitation cases in recent years.
The companies that commissioned the authors to handle their cases had two common requirements: first, of course, the successful rehabilitation of the company; and second, the retention of the CEO's management rights.
The authors encountered various challenges while trying to meet these needs in the course of the case, and each time they relied on existing research results on the Debtor Rehabilitation Act.
After the foreign exchange crisis, the bankruptcy system was activated and precedents accumulated, leading scholars' research progressed considerably. Unfortunately, however, in many cases, existing research results failed to provide clear solutions to the problems the authors were concerned about.
This was a natural result, considering that while previous research focused on legal theory, the challenges the authors grappled with were mostly practical, and many of them were in areas other than law, such as accounting and management.
Through the process of navigating the case through trial and error, the authors have accumulated know-how on how to successfully complete the rehabilitation process for bankrupt companies and ensure that the CEO retains management control.
Even at this very moment, hundreds of corporate rehabilitation cases are underway in rehabilitation courts across the country.
There are undoubtedly CEOs and their assistants at companies undergoing rehabilitation who are struggling with the same or similar issues as the authors.
The authors decided to write this book to provide practical help to these people.
We determined that the most effective way to achieve this writing goal was to describe it based on cases.
Accordingly, the authors organized this book around the case of a fictitious company called Daehan Co., Ltd. that faced financial bankruptcy, filed for rehabilitation proceedings, went through the prescribed procedures, and successfully completed rehabilitation after receiving a decision to terminate the rehabilitation proceedings.
It also covers major documents such as the application for commencement of rehabilitation proceedings and rehabilitation plan of Daehan Corporation, and introduces practical tips related to each procedure.
The case of Daehan Co., Ltd. is based on a case actually handled by the authors. With the consent of the client company, the company name and the name of the CEO were pseudonymized, and the dates of various documents and the names of stakeholders were anonymized. However, the remaining information is identical to the actual case.
I hope this book will be of some help to CEOs of bankrupt companies, practitioners handling corporate rehabilitation cases, and those studying debtor rehabilitation law.
I'm not sure how well the authors' intentions will be realized, and I'm worried about publishing a poor piece.
However, he dared to take courage and promised to improve through the sharp criticism of his fellow students.
I would like to express my gratitude to the staff at Park Young-sa who readily accepted the publication of this book and worked hard to edit it.
This book is dedicated to my family, who have always supported me.

2023.
1.
Kwon Ki-il? Kang Min-woo