What measures are taken when filing a corporate rehabilitation application?

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corporate rehabilitation application

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作者: 정찬우

When a corporate rehabilitation application is received, the court first orders the prepayment of expenses necessary for the rehabilitation procedure and conducts a hearing of the representative to verify the circumstances of the application and the financial status of the company.

Then, before the decision to commence rehabilitation procedures, preservation orders are issued to prevent the debtor's reckless management or property flight/concealment. Through this, prohibition of repayment, prohibition of disposing of assets above a certain amount, prohibition of new borrowing, and restrictions on hiring of executives and employees are also ordered together.

In addition, individual compulsory execution against the debtor's property may be suspended, or a comprehensive prohibition order may be issued prohibiting future compulsory execution against all rehabilitation creditors and rehabilitation secured creditors.

Meanwhile, a corporate rehabilitation application can in principle be freely withdrawn only before the decision to commence rehabilitation procedures, but after a preservation order, suspension order, or comprehensive prohibition order has been issued, court permission must be obtained.

If you are facing complex difficulties related to a corporate rehabilitation application, it is desirable to receive help from a corporate rehabilitation specialist attorney from the early stage and respond strategically.