Introduction
An arbitral award is sufficient evidence to commence an insolvency involuntary proceeding against a debtor.[1]
With this case law a door has been opened to an alternative remedy: securing the debt recognized under an arbitration award through insolvency proceedings, and use this course of action to push the debtor to eventually settle.
In this article, we will address:
It has been just over two months since one of South Korea's largest shipowners and operators, Hanjin Shipping Co Ltd (“Hanjin”), applied for court rehabilitation. On 1 September 2016, the Bankruptcy Division 6 of the Seoul Central District Court (the “court”) issued a decision accepting that application and commencing rehabilitation proceedings.
As you may be aware, one of South Korea's largest shipowners, Hanjin Shipping Co Ltd (“Hanjin”), has applied for court rehabilitation in Korea. On 1 September 2016 the Seoul Central District Court (Bankruptcy Division 6) issued a decision accepting that application and commencing rehabilitation proceedings.
Based on our experience in dealing with recent rehabilitations involving the Korean shipping industry and working closely with Korean lawyers, we set out below a few guidance points.
What is a Korean Court Rehabilitation?