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.