What measures are taken when a corporate rehabilitation application is filed?

When a corporate rehabilitation application is received, the court first orders the advance payment of the costs necessary to conduct the rehabilitation proceedings and conducts an examination of the representative to verify the circumstances of the application and the company's financial condition.

Thereafter, until the decision to commence rehabilitation proceedings is made, a preservative measure is issued to prevent the debtor's reckless management or the flight and concealment of assets, and through this, a prohibition on repayment, a prohibition on disposing of assets above a certain amount, a prohibition on new borrowing, and restrictions on hiring executives and employees are ordered together.

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

Meanwhile, a corporate rehabilitation application may, in principle, be freely withdrawn only until the decision to commence rehabilitation proceedings is made, and after a preservative measure, a suspension order, or a comprehensive prohibition order has been issued, the permission of the court must be obtained.

If you are experiencing complex difficulties in connection with a corporate rehabilitation application, it is advisable to respond strategically with the help of an attorney experienced in corporate rehabilitation from the earliest stage.