[Cheonan Corporate Rehabilitation] Cheonan Corporate Rehabilitation: A Legal Advisory Case for Company A Using an M&A Approach

The client who came in for a consultation regarding a Cheonan corporate rehabilitation proceeding was the representative of Company A.

Company A, however, faced a poor business environment, which made it difficult to raise the funds needed to secure the capital to carry out a rehabilitation plan after entering the proceeding.

During the consultation, the Daeryun Law Firm Cheonan corporate rehabilitation attorney recommended proceeding with corporate rehabilitation through an M&A.

When self-driven rehabilitation is impossible or inappropriate even if the company continues operating or sells off non-operating assets,

a rehabilitation proceeding through a merger or acquisition that brings in well-funded outside investors or new management at an early stage may be appropriate.

The Cheonan Corporate Rehabilitation Team Recommends a Merger and Acquisition.

For various reasons, Company A had very low standing in the eyes of its creditors.

Because a rehabilitation proceeding moves forward smoothly only when the company has the creditors' confidence, a strategy to address this was needed.

Proceeding with an M&A, however, offers the advantages of helping to secure outside funds and allowing the rehabilitation proceeding to conclude at an early stage.

For the client and management, restoring the confidence lost with creditors was the top priority,

and because rebuilding that trust relationship was important, the Cheonan corporate rehabilitation team all the more recommended corporate rehabilitation through a merger and acquisition.

The Cheonan corporate rehabilitation team explained the types of M&A used in corporate rehabilitation proceedings.

• First, the third-party allotment of new shares method

• Second, the business transfer method

• Third, the asset transfer method

Through consultation with the client, the team assessed Company A's current situation and provided corporate legal advisory on which method would be the appropriate procedure.

Most companies use the third-party allotment of new shares method.

√ The Cheonan Corporate Rehabilitation Team's Corporate Legal Advisory for Company A

Recently, many companies have made use of M&A while pursuing corporate rehabilitation.

If your company is in a situation where it must pursue corporate rehabilitation, corporate legal advisory is needed.

The Daeryun Law Firm Corporate Legal Group

advises on cases where, as in the client's matter, value can be maximized by using an M&A during a rehabilitation proceeding, and it provides corporate legal advisory tailored to each situation.

It also provides customized legal services for various types of corporate rehabilitation, corporate legal advisory, and more, through performance teams composed of 3 to 20 members.

If you are preparing for a Cheonan corporate rehabilitation, you may wish to proceed together with the Daeryun Law Firm Corporate Legal Group.