Bankruptcy & Corporate Restructuring

“One of the top-class law firms in Korea. The members of the firm work diligently for the best interests of the client, with zealous representation in multiple facets of the issues our business faces."

- Chambers & Partners Asia-Pacific

Overview

BKL’s Corporate Restructuring Practice Group has market leading expertise in this area. The group built its extensive experience in the practice area by handling numerous insolvency cases (corporate restructuring, rehabilitation and bankruptcy among others) for decades in the wake of Asian and global financial crises. The group’s rich experience in a wide variety of matters has built deep institutional knowledge of insolvency matters, including a remarkable ability to detect pre-crisis symptoms and post-response capability. The practice group is constituted by a diversity of excellent professionals with a team of lawyers, CPAs and dedicated researchers. The combination of excellent individual lawyers, and the team’s collective capabilities allows the group to offer preemptive and preventive solutions for each case and phase in restructuring and insolvency cases.

BKL’s Corporate Restructuring Practice Group is unique in the market for its combination of legal expertise with the associated skills, and has been providing its clients with multi-dimensional solutions through organic collaboration with experts with extensive hands-on experience, and professionals who have experience and knowledge of the insolvency proceedings after long years’ tenure of office at government agencies and regulatory authorities.

Mere legal interpretation of relevant law or the preparation of good pleadings alone does not guarantee successful advisory and litigation services. In fact, in order to successfully conduct bankruptcy and corporate restructuring cases, a broad range of skills and experience are necessary: including an in-depth understanding of a company’s operating and financial structures, corporate accounting, the regulations and practice of capital market financial investment system, and the practice of judicial and governmental authorities, which only BKL’s Corporate Restructuring Practice can provide in the market.

The practice group has around 20 professionals, including attorneys, certified public accountants and dedicated researchers, and is renowned for its remarkable experience and incomparable expertise in bankruptcy and corporate restructuring practice – which were accumulated through exclusively handling bankruptcy and corporate restructuring cases for more than 25 years. This exclusive experience has allowed the group to develop expertise that is only available to them in the market.

With such experience and expertise, BKL’s Corporate Restructuring Practice Group provides domestic clients with legal services in respect of all issues involved with bankruptcy and corporate restructuring process. Legal services provided include establishing restructuring plans or rehabilitation plans for financially distressed companies and implementation thereof by means of asset disposals, business transfers, M&A, transfer of NPLs and debt collections, providing advice on the Corporate Restructuring Promotion Act and representing in bankruptcy or corporate restructuring proceedings.

Through its extensive international practice, the practice group has built a strong network with law firms across the world by cooperating in cross- border insolvency matters over the last three decades. As such, BKL’s Corporate Restructuring Practice enjoys a strong reputation in cross-border insolvency and corporate restructuring practice.

Key Services

Application for Commencement of Rehabilitation Proceedings
The practice group represents clients in their application for commencement of corporate rehabilitation proceedings, which is subject to the court’s decision. The court’s decision to commence rehabilitation proceedings is the first step in the corporate rehabilitation process, and it is highly important to recognize that for successful completion of corporate rehabilitation process, strategically planning in advance based on full knowledge of all aspects of corporate rehabilitation procedures and major issues involved at each procedure is necessary.
Advisory and Litigation Service on Rehabilitation Proceedings
Upon successfully achieving the first step of obtaining the court’s decision for commencement of rehabilitation proceedings, BKL’s Corporate Restructuring Practice continues with its service by providing legal advice in relation to each procedure (e.g. admission or denial of claims, establishment and approval of a rehabilitation plan, negotiations with creditors, and completion of the proceedings) until completion of the rehabilitation proceedings—which includes representing the client in court proceedings unique to the rehabilitation process (e.g. confirmation of rehabilitation claims, proceedings for denial and appeal against approval on a rehabilitation plan or an amended rehabilitation plan).
M&A for Rehabilitation Companies
BKL’s Corporate Restructuring Practice Group also provides services which are in principle similar to the services provided in relation to M&A-related matters but has the unique feature that the transaction is conducted under the rehabilitation court’s supervision as part of the rehabilitation proceedings.
BKL’s Corporate Restructuring Practice Group has an incredible reputation for continued successful completion of M&A transactions conducted as part of rehabilitation proceedings. Successful completion of M&A transactions during the rehabilitation proceedings is a very significant part of the process to the rehabilitation company as well as its creditors since it provides additional funds to be paid to the creditors and allows the rehabilitation company to successfully complete the rehabilitation proceedings.
Workout (Corporate Restructuring Promotion Act)
BKL’s Corporate Restructuring Practice Group provides a wide range of legal services related to the Corporate Restructuring Promotion Act, in particular in relation to joint management by creditor financial institutions or a similar private workout procedures. The practice group’s legal services also extend to providing advice on M&A during work-out procedures.
Bankruptcy
BKL’s Corporate Restructuring Practice Group actively represents clients in bankruptcy proceedings. The services provided include applying for declaration of bankruptcy, legal advice on bankruptcy proceedings and representation in lawsuits arising from the bankruptcy proceedings.
Cross-border insolvency
BKL’s Corporate Restructuring Practice Group provides related legal advice to domestic clients in their cross-border insolvency proceedings abroad in liaison with local counsel as well as foreign clients in insolvency proceedings in Korea.

Practice Areas

Representative Cases

Advised Woongjin Group on the commencement of concurrent rehabilitation procedures for both its holding company and affiliates
Advised Listed Company EMW on the verge of delisting from KOSDAQ on the shortest-term approval of rehabilitation plan using Pre-Packaged Plan
Advised client on its debt adjustment through M&A prior to the first-ever approval of membership golf course and its conversion into public golf course
Application for Commencement of Rehabilitation Procedures and Rehabilitation Procedure-Related Advisory Service
Advised Woongjin Group on the commencement of concurrent rehabilitation procedures for both its holding company and affiliates
Advised Listed Company EMW on the verge of delisting from KOSDAQ on the shortest-term approval of rehabilitation plan using Pre-Packaged Plan
Advised Dongyang Group on the commencement of concurrent rehabilitation procedures for its 5 affiliates including its holding company
Advising on M&A of Rehabilitated Companies
Advised large-scale transportation company on the inflow of acquisition price equal to 10 times the debt amount amid the rehabilitation proceeding
Advised client on its debt adjustment through M&A prior to the first-ever approval of membership golf course and its conversion into public golf course
Advised a shipping company on the preparation of rehabilitation plan and restructuring process by way of the sale through the M&A prior to the approval
Advised KOSDAQ-listed company on the approval of rehabilitation plan, clearance of contingent liabilities and maintenance of listing
Workout (Corporate Restructuring Promotion Act)-Related Advisory Service
Advised a domestic leading semiconductor manufacturer on its workout program and M&A
Advised a domestic leading energy company on the commencement of workout program led by creditor financial institutions in the restructuring process
Advised a domestic telecommunications conglomerate on the commencement of restructuring process through the corporate division and bankruptcy procedure as part of its workout program
Advised the purchasers of an apartment hotel on the restoration of their hotel management rights through bankruptcy procedures against the developer who represented them in Jeju Island.
Bankruptcy-Related Advisory Service
Advised a domestic leading semiconductor manufacturer on its workout program and M&A
Advised a domestic leading energy company on the commencement of workout program led by creditor financial institutions in the restructuring process
Advised a domestic telecommunications conglomerate on the commencement of restructuring process through the corporate division and bankruptcy procedure as part of its workout program
Advised the purchasers of an apartment hotel on the restoration of their hotel management rights through bankruptcy procedures against the developer who represented them in Jeju Island.

Practice Areas