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 Key Services Practices Representative Cases Key Contacts Related Content

Overview

BKL's Corporate Restructuring Practice Group has amassed extensive experience and expertise through handling numerous corporate restructuring, rehabilitation, and insolvency cases, including those arising during the IMF financial crisis and the global financial crisis. The Group has developed not only ex-post facto response capabilities but also outstanding skills in identifying potential risks proactively. Through the seamless teamwork of attorneys, CPAs, and dedicated researchers equipped with substantial experience, in-depth knowledge, and swift execution capabilities, the Group provides clients with proactive preventive measures and tailored solutions for restructuring and insolvency cases at every stage and in various scenarios.

Advisory services regarding corporate restructuring and insolvency cases cannot be effectively handled through mere legal interpretation or document drafting skills. They also require a comprehensive understanding of a company’s operational and financial structures, the principles and practices of corporate accounting, the practices and regulations of capital markets and financial investment systems, court practices and tendencies, and the policy directions of government authorities. BKL's Corporate Restructuring Practice Group collaborates organically with various professionals having not only practical experiences but also deep insight and expertise gained from their long tenure with government agencies and supervisory authorities, thereby delivering optimal multidimensional solutions.

Based on the foregoing, BKL provides comprehensive legal services in all areas of insolvency and corporate restructuring, including developing restructuring plans for insolvency-prone companies, designing rehabilitation strategies for insolvent companies, legal advisory and litigation services related to insolvency proceedings, corporate restructuring solutions (such as asset sales, business transfers, spin-offs, and mergers), restructuring measures for distressed companies, legal advisory services under the Corporate Restructuring Promotion Act, and NPL (non-performing loan) transfer and debt recovery services. BKL also collaborates closely with leading international law firms to offer widely recognized legal services in the field of cross-border insolvency.

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

Labor & Employment

Representative Cases

Advised a client on an application for, and proceeding with, simultaneous rehabilitation proceedings for a holding company and its affiliates

Advised a KOSDAQ-listed company facing a delisting crisis on the fast-track approval of a rehabilitation plan using a pre-packaged plan

Advised on a private golf course on its debt restructuring and conversion into a public golf course through the first-ever M&A prior to obtaining approval (which is the first case establishing a new paradigm of debt adjustment and conversion into a public golf course through a pre-approval M&A within the rehabilitation proceedings)

Advice on Application for Commencement of Rehabilitation Proceedings and Matters regarding Rehabilitation Proceedings

Advised a client on creditor-initiated rehabilitation proceedings combining the autonomous restructuring support (ARS) program with a pre-packaged Plan (P-Plan)

Advised a client on an application for, and proceeding with, simultaneous rehabilitation proceedings for a holding company and its affiliates

Advised a KOSDAQ-listed company facing a delisting crisis on the fast-track approval of a rehabilitation plan using a pre-packaged plan

Advised a client on simultaneous rehabilitation proceedings for a holding company and its five affiliates

Advice on M&A for Companies in Rehabilitation

Advised a major transportation company on an inflow of acquisition funds exceeding ten times the debt during its rehabilitation proceedings

Advised a shipping company on the formulation of a rehabilitation plan and restructuring through a pre-approval M&A sale

Advised a KOSDAQ-listed company on rehabilitation plan approval, resolution of contingent liabilities, and maintaining its listing status

Advice on Workouts (under the Corporate Restructuring Promotion Act)

Advised a mega shipbuilding company on its voluntary agreements and asset sale

Advised a construction company on creditor financial institutions and related project financing (PF) for its workout under the 7th Corporate Restructuring Promotion Act

Advised a Korean shipbuilding company on creditor financial institutions for its workout under the Corporate Restructuring Promotion Act

Advised a Korean major semiconductor company on its workout and M&A

Advised a Korean leading energy company on a workout process led by creditor financial institutions during its restructuring proceedings

Advice on Bankruptcy

Advised a Korean large telecommunications company on its restructuring using company split and bankruptcy procedures during its workout proceedings

Advised a client on a case where the bankruptcy proceedings involving a developer representing timeshare purchasers of a condominium hotel in Jeju Island resulted in the recovery of hotel operating rights for the timeshare purchasers

Key Contacts

Our Team

Bankruptcy & Corporate Restructuring

Overview

Key Services

Practice Areas

Representative Cases

Key Contacts

Related Content

Practice Areas

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