“Workout” in Korea is generally accepted as an out-of-court corporate restructuring process aimed at speedy business normalization of financially distressed companies by cooperation between the debtor company and its creditors.
On 19 May 2016, the National Assembly passed the bill to amend the Debtor Rehabilitation and Bankruptcy Act (“DRBA”). Key amendments include (1) improvements to the early proposed rehabilitation plan submission policy; (2) broadened scope of creditor participation in the proceedings; and (3) stronger protection of creditors with commercial claims. The revised DRBA is expected to enter into force 3 months after promulgation.
I. Improvements to the early rehabilitation plan proposal submission policy
On 27 May 2016, South Korea's STX Offshore & Shipbuilding Co. ("STX OS"), once the country's fourth-largest shipbuilding firm by revenue, filed for court-supervised rehabilitation, in the Seoul Central District Court.
I. Hanjin Shipping applies for rehabilitation proceedings
In Spain individuals and entities have an obligation to file for insolvency if they are unable to regularly meet their obligations within two months of the position of insolvency coming to light. Breach of that obligation could lead to civil (and even criminal) liability.
The legal obligation imposed by the Spanish Insolvency Law 22/2003, of 9 July (the “Spanish Insolvency Law”), has been modified by Royal Decree-law 8/2020 (the “RDL”), of 17 March, on extraordinary measures to tackle the economic and social impact of COVID-19.
Reopening to the public of establishments, effects of RDL 16/2020 on procedural, insolvency and tax matters, labor measures in preparation for de-escalation and news on administrative procedures
Las novedades regulatorias que afectan a las empresas se están aprobando de forma constante y continuada. Semana a semana, Garrigues ofrece un resumen de las principales cuestiones que deben tener en cuenta las empresas a lo largo de los próximos días.
The declaration of the state of emergencybecause of the COVID-19 crisis will significantly increase the number of applications for insolvency in Spain.
Measures proposed by the General Council of the Judiciary (Consejo General del Poder Judicial) (GCJ) are designed to streamline insolvency proceedings in order to facilitate the continuity of the business activity of insolvent companies or, at least, to enable them to obtain the maximum performance from the sale of their assets.
In this context, the GCJ measures appear to be based on two principles:
Liberado el segundo tramo de la lnea ICO de avales para paliar los efectos econmicos del COVID-19, aprobada por el Real Decreto-ley 8/2020 (RDL 8/2020), se discute an estos das sobre la compatibilidad de estas garantas con operaciones de refinanciacin y reestructuracin de deuda.
En concreto, se plantean dudas que se concretan en tres momentos temporales:
- Implications of Supreme Court 2012Do1283 (rendered June 14, 2012)
Regarding the acquisition of a company under reorganization according to the Debtor Rehabilitation and Bankruptcy Act, the Supreme Court ruled on June 14, 2012 that the general principles of a leverage buy-out ("LBO") should apply.