Bankruptcy and corporate restructuring are becoming increasingly important because of the ever-changing international financial environment. In response, Yulchon has formed a highly experienced team of professionals to run our Bankruptcy and Corporate Restructuring Team. We regularly provide sophisticated and efficient bankruptcy and restructuring services to a diverse group of international and domestic clients.
Following the Asian Financial Crisis in the late 1990’s, Yulchon emerged as a market leader in the field of bankruptcy and corporate restructuring. During that time, forgotten bankruptcy and corporate restructuring laws suddenly became relevant again, and new insolvency laws were enacted, such as the landmark Corporate Restructuring Promotion Act.
Yulchon quickly adapted to the new regulatory framework and began representing various parties, including debtors, creditors, and potential buyers of financially distressed companies. We gained invaluable experience handling some of the most important reorganization, bankruptcy, and work-out and corporate restructuring cases. During this period of intense activity, Yulchon was not only able to strengthen its bankruptcy and restructuring practice, but it made a significant contribution to the development of new legal theories and bankruptcy practices. Yulchon’s Bankruptcy and Corporate Restructuring Team is actively involved in all aspects of bankruptcy and restructuring practice, from filing petitions for bankruptcy and rehabilitation proceedings, to preparing and obtaining approval of corporate reorganization plans, to the normalization of reorganized companies and financially distressed companies, including reorganization through mergers and acquisitions.
In Korea, it is impossible to provide practical and meaningful advice without an in-depth, specialized understanding of bankruptcy and corporate restructuring laws. Corporate bankruptcy and rehabilitation proceedings, as well as mergers and acquisitions of rehabilitated companies involved in reorganizations or workouts, are supervised by the bankruptcy court or the creditors committee (which is often represented by the primary creditor bank). Therefore, the bankruptcy and corporate restructuring field differs significantly from general corporate and M&A practice.
Yulchon’s Bankruptcy and Corporate Restructuring Team has a deep understanding of the relevant laws and is very comfortable avoiding procedural pitfalls and obstacles that often challenge most legal professionals. Our experience and expertise gives us the confidence to say that we can provide the best bankruptcy and corporate restructuring services available in Korea.
Major Practice Areas
- Diagnostics on the financial condition of a firm and advice on rehabilitation options
- Filing of petitions for bankruptcy or rehabilitation on behalf of financially distressed companies and providing related legal advice
- Advice on the securitization of distressed assets and the disposition of non-performing loans
- Advice on the domestic and cross-border M&As of rehabilitation companies, bankrupt companies and work-out companies
- Advice on the establishment and modification of rehabilitation plans
- Advice on the corporate restructuring of financially distressed (work-out) companies under the Corporate Restructuring Promotion Act
- Advice on the recovery of distressed loans such as rehabilitation claims and bankruptcy claims
- Litigation in bankruptcy and rehabilitation proceedings
- Advice on cross-border insolvency
- Filing of petitions for individual rehabilitation proceedings and providing related legal advice
M&A of Insolvent Companies
- Advised on the sale of Jinro Limited during its corporate reorganization
- Advised STX Corporation (currently STX Pan Ocean Co., Ltd.) on the acquisition of Pan Ocean Shipping Co., Ltd. during its corporate reorganization
- Advised on the M&A of Midopa Corporation during its corporate reorganization
- Advised on the M&A of Incheon Oil Refinery Co., Ltd. during its corporate reorganization
- Advised Taiwanese PVI Consortium on the acquisition of BOE Hydis Technology Co., Ltd. during its corporate rehabilitation
- Advised a creditors group on the management and sale of Hynix Semiconductor, Inc. during its corporate restructuring
- Advised on the M&A of Daewoo Electronics Corp. during its corporate restructuring
- Advised on the M&A of Daewoo Heavy Industries & Machinery Co., Ltd. during its corporate restructuring
Filing of Petition for Bankruptcy and other Matters
- Advised on the sale and purchase of composition claims for a liquor company during composition proceedings
- Filed a petition for composition proceedings and corporate reorganization on behalf of a civil engineering company
- Filed a petition for composition proceedings on behalf of electronic parts manufacturing company
- Filed a petition for composition proceedings for a telecommunications company
- Filed a petition for composition proceedings for a pharmaceutical company
- Filed a petition for composition proceedings and corporate reorganization on behalf of a construction materials company and advised on matters after approval of the corporate reorganization plan
- Filed a petition for corporate reorganization on behalf of an electric/electronics and telecommunications equipment manufacturing company
- Represented a computer manufacturing company in liquidation proceedings in relation to a lawsuit brought against its subsidiary in the U.S.
- Advised a creditors committee with respect to the filing of a petition for corporate reorganization by a Korean parent company in the IT industry as a result of being a guarantor for financing of its subsidiaries in the U.S.
- Advised on corporate restructuring matters for a semiconductor company
- Advised on a dispute between international financial institutions with respect to bankruptcy of a U.S. investment bank
- Advised on a real estate transaction for a Korean company in rehabilitation
- Advised a foreign creditor on the filing of a petition for bankruptcy against a Korean Company
- Advised a foreign creditor in foreign bankruptcy proceedings on cross-border insolvency matters including preservation of properties located in Korea and belonging to its Korean subsidiary
- New Way of Handling Secured Rehabilitation Claims – Regarding How to Handle Japan’s Corporate Recovery Procedures through linkage, Human Rights and Justice No. 463 (February 2017)
- Summary and Implication of Japan Airlines’ Insolvency, Korean Lawyers Association No. 721 (Co-Author) (February 2017)
- Summary and Significance of Hanjin Shipping’s Insolvency, International Commercial Law Vol. 44 (December 2016)