go contents

Corporate Restructuring SPECIAL HANDS FOR CORPORATE GOVERNANCE & FINANCE

Eligibility and Costs

Eligibility

신청비용
Grounds for Filing (Article 34 of the Act) Who May File
When the debtor finds it impossible to repay obligations by due dates without causing serious hindrance to the continuation of business
(Article 34 Section1 subsection 1)		 Debtors Only
When it is feared that bankruptcy may accrue to the debtor
(Article 34 Section1 subsection 2)		 Other than the debtor:
  1. ① If the debtor is a stock/limited company

    any creditor holding claims equivalent to not less than 1/10 of the capital or any shareholder/equity holder holding stock/equity share equivalent to not less than 1/10 of the capital

  2. ② If the debtor is not a stock/limited company

    any creditor holding claims equivalent to not less than KRW 50 million or any equity holder holding equity share equivalent to not less than 1/10 of the capital contribution of a partnership, limited partnership, or other corporation

Costs

Restructuring is the process of reorganizing contractual and legal relation between a debtor (firm) and its creditors, investors and/or other interested parties for the purposes of allowing the debtor to have effective rehabilitation and re-emerge as a healthy organization (Preface of Article 1 of the Laws on Rehabilitation of Debtors and Bankruptcy)

Restructuring is available even for a debtor with severe financial problems if continuing its business is expected to create more value than going into liquidation. Under bankruptcy restructuring, a debtor submits 10 year restructuring plan to the presiding court. The plan includes the amount outstanding debts that may be paid off with the forecasted operating profits. With the consent of the creditors and under the court’s oversight, the debtor may pay off the debt in installments. More debtors choose to file for restructuring earlier than before and prior consultation with experienced professional is highly recommended.