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Bankruptcy & Corporate Restructuring

BKL established a department specializing in bankruptcy for the first time in Korea and has grown to become a leading Korean law firm in this area. Since the Asian financial crisis in 1997, BKL has been involved in almost all domestic bankruptcy-related cases. BKL successfully represented our clients, regardless of whether they are debtor companies, creditors or any other related third parties involved in bankruptcy proceedings.

BKL’s Corporate Restructuring Team was previously known as our “Corporate Reorganization Team” and “Corporate Rehabilitation Team” in accordance with the changes in the bankruptcy laws in Korea. In the so-called “New Normal” era following the financial crisis in 2008 and the global recession thereafter, the team has recently changed its name to “Corporate Restructuring Team” by responding to a trend to convert the Corporate Restructuring Promotion Act into a permanent statute and the demand for various legal services for corporate rehabilitation or reorganization.

Over decades BKL has built up unrivaled and extensive experience in this area and continues to effectively meet our clients’ demands and needs.

Bankruptcy and corporate restructuring cases are regularly of complex nature and difficult to be handled by merely interpreting laws or using pre-drafted documents. Rather, most of the cases require an in-depth understanding of the corporate business and financial structure, corporate accounting principles and practices, regulations on the financial and trust system, court practices and trends and government policy directions. Without such comprehensive understanding, it is not predictable whether the outcome of bankruptcy and corporate restructuring will meet the client’s objective. At BKL, numerous attorneys and certified-public accountants, who are trained over years in dealing with various issues and interested parties in numerous cases, work together in a team.

Our Corporate Restructuring Team is comprised of around twenty professionals, including attorneys, certified-public accountants and dedicated researchers. The team has accumulated ample experience and expertise in this area by dealing with numerous bankruptcy and corporate restructuring cases for more than twenty years. With such experience and expertise, our team also provides superb legal services in international bankruptcy cases through cooperation with law firms overseas. Our team handles all ranges of bankruptcy and corporate restructuring works that include establishment of restructuring measures for troubled companies and rehabilitation measures for bankrupt companies; provision of advisory and litigation services relating to bankruptcy procedures; sale of assets as part of the rehabilitation measures for insolvent companies, transfer of business, spin-off, merger and other restructuring work; provision of legal advice in accordance with the Corporate Restructuring Promotion Act, transfer of NPLs and collection of debts.


Representation in filing for the commencement of rehabilitation proceedings

The corporate rehabilitation proceedings (formerly known as corporate reorganization proceedings) start with obtaining a court decision on the commencement of such proceedings. Then an application for such commencement must be filed, which we (BKL) regularly conduct on behalf of our clients. Obtaining the decision to commence the rehabilitation proceeding is merely the first step to achieving the ultimate goal of corporate reorganization and the procedures therefor begin after obtaining such decision. Therefore, in order to achieve a successful outcome of the rehabilitation proceedings, it is inevitable to fully comprehend the overall procedures and contentious issues from the pre-application phase.

Provision of advisory and litigation services relating to rehabilitation proceedings

We provide innovative and practical solutions to companies that have obtained a court decision on the commencement of rehabilitation proceedings (including acknowledgment/denial of claims, establishment of rehabilitation plans and authorization, establishment of amendments to rehabilitation plans and authorization, negotiations with creditors, and closing of rehabilitation proceedings, etc.). Further, we represent our clients in litigation suits arising in the course of the rehabilitation proceedings (such as litigation for finalization of claims or denial, or appeal against any decision on authorization of rehabilitation plan or any amendment to the plan, etc.).

Acquisitions of rehabilitated companies

Fundamentally, the same type of M&A legal advisory services that are generally provided by law firms are provided for acquisitions of rehabilitated companies. However, several differences exist due to the distinct fact that the services for rehabilitated companies are provided under the supervision of the court. Our Corporate Restructuring Team provides not only general corporate legal advice but also serves as the lead manager in mergers with and acquisitions of rehabilitated companies.

Services relating to workout (the Corporate Restructuring Promotion Act)

We perform a range of legal services as required in connection with the progress of the joint administrative procedures by creditor financial institutions under the Korean Corporate Restructuring Promotion Act or any private workouts that are carried out in any manner similar thereto. Furthermore, we provide legal advice on mergers and acquisitions of companies concerned.

Services relating to bankruptcy procedures

We provide various legal advice regarding bankruptcy procedures, including representation in filing for bankruptcy, and lead litigation suits.

International bankruptcy

We offer legal services in international bankruptcy cases, i.e., cases arising in connection with the effects of the procedures for the bankruptcy of a domestic company in any other countries or vice versa.
Major Cases

    • Representation of clients in their applications for the commencement of rehabilitation proceedings

    B Group’s affiliates C and B; eight construction companies including S; two golf course companies including N; semiconductor development and manufacturing company A; two shipbuilders including K; shoemaker E; pharmaceutical companies H and M; hotel S; W Group’s holding company W and its affiliate K construction; car distributor D; newspaper company A; cosmetics company N; electric car company C; communications equipment parts manufacturer A and its subsidiary; learning equipment/materials manufacturer/seller G; LCD manufacturer/seller B; spinning company C; oil company I; communications equipment manufacturer M; fur clothing company J; logistics company D; electronic products manufacturer H; marine transportation company S; W Group; J Group; G Group, etc.

    • Provision of advisory and litigation services relating to rehabilitation proceedings

    Holding company D; marine transportation companies P, D, and S; 10 construction companies including S construction; photovoltaic material manufacturer H; photovoltaic equipment manufacturer S; golf course company C; real estate development project companies P aEnd G; automobile companies K and D; clothing companies N and S; textile company H; steel company S; distribution company M and its affiliate D; communications company D; shoemaker E; precision castings manufacturer C; confectionery company H; audio tape manufacturer S, etc.

    • Acting as an M&A lead manager

    Construction company S; interior decoration materials company A; sewing machine manufacturer S; golf course companies T, H, and Y; electric wire company C; automobile parts company H; logistics company D; clothing company N; textile companies H and K; LCD manufacturer and seller B; food company K; electronic products manufacturer E (formerly H); audio tape manufacturer S; glass manufacturer J; wire rope manufacturers and sellers Y and D; mold core manufacturer H; musical instrument manufacturer Y; communications company E; chemical companies G and H, etc.

    • Provision of M&A legal advice
    Advice on acquisition: automobile company S; shoemaker K; confectionery company H; steel company H; computer company S; clothing company T; rolled, pressed, and elongated aluminum products manufacturer D; domestic bank L’s acquisition of NPL
    Advice on sale: leather company S; car distributor D’s bus business unit; photovoltaic ingot and wafer manufacturer N; automobile companies D and S; steel company S; marine product company S; distribution company M; construction companies H and K; linerboard manufacturer D; auto parts manufacturer D’s airbag and safety belt sales team; spinning company C, etc.

    • Provision of workout (Corporate Restructuring Promotion Act) related services

    Semiconductor manufacturer H; 12 construction companies including H; imported car distributor H; textile company K; petrochemical company H; display manufacturer O; heat exchanger and pressure container manufacturer D; clothing company S; three shipbuilders including S; public works company N; cement company H; D Group; mobile phone manufacturer P, etc.
    Advised companies S and W regarding corporate restructuring via bondholders’ meeting

    • Provision of Services related to Bankruptcy Procedures

    Private equity fund C; construction company S; financial institution P; communications equipment company X; golf course company R; station development company N; e-healthcare company H; IPTV system manufacturer S; credit union S; financial investment company G; real property renter and supplier W; golf articles manufacturer/seller U; communications company D; company O’s CRV; capital company S, etc.

    • International Insolvency
    Advised creditors regarding filing claims involving investment bank "L"
    International insolvency issues involving overseas constructions conducted by construction companies S, K, etc.
    International insolvency issues related to marine companies S, P, D, etc.

    • Provision of Services related to Golf Courses
    Lead manager (advisor): Gyeonggi-do-based company T, Jeollanam-do-based company K, Jeollanam-do-based company Y, Jeju-do-based company H
    Reorganization filing and relevant advice: Chungcheongbuk-do-based company K, Jeju-do-based company H
    Advice to emergency members meetings: Gyeongsangnam-do-based company H, Gyeongsangnam-do-based company Y, Chungcheongnam-do-based company B, Gyeonggi-do-based company S, Chungcheongbuk-do-based company D, Chungcheongnam-do-based company N
    Advice to creditors: Gyeonggi-do-based company K, Chungcheongnam-do-based company G, Gyeonggi-do-based company I, Gyeongsangbuk-do-based company H, Gangwon-do-based company H, Chungcheongbuk-do-based company H, Chungcheongbuk-do-based company D, Gyeonggi-do-based company C
    Advice on acquisition: Chungcheongbuk-do-based company D, Chungcheongnam-do-based company C, Gyeonggi-do-based company C, Chungcheongbuk-do-based company G, Gangwon-do-based company T
    General advice: Gangwon-do-based company Y, Jeollanam-do-based company T, Jeollanam-do-based company D, Gyeonggi-do-based company L, Jeollanam-do-based company D