Corporate rehabilitation attorney, until when does the procedure continue after the rehabilitation plan is approved?

Hello. I am a corporate rehabilitation attorney at Daeryun Law LLC.

Even after the rehabilitation plan is approved, the company's rehabilitation proceedings continue for a certain period.

However, until when that procedure continues can vary depending on the case.

As a corporate rehabilitation attorney, I will explain in detail.

In general, the court may terminate the rehabilitation proceedings where repayment has been carried out for a certain period in accordance with the rehabilitation plan, there is no particular obstacle to that performance, and it is determined that the company can sufficiently achieve the purpose of the rehabilitation proceedings.

In other words, even if the rehabilitation plan has not been fully completed, if rehabilitation appears substantively possible, an early termination decision can be made.

By contrast, where, even after the rehabilitation plan is approved, the company's management situation deteriorates and the possibility of rehabilitation is judged to be low, or where the implementation of the rehabilitation plan is judged to be realistically difficult, the court may decide to discontinue the rehabilitation proceedings and convert them into bankruptcy proceedings.

Therefore, even after the approval of the rehabilitation plan, steady performance and securing managerial stability are important, and accordingly the rehabilitation proceedings can be successfully concluded.

Whether to terminate the rehabilitation proceedings is decided by the court in consideration of the overall situation.

For details, we recommend confirming through a consultation with a corporate rehabilitation attorney.