In corporate rehabilitation, what requirements are needed for a rehabilitation plan to be approved?

In corporate rehabilitation proceedings, in order for a rehabilitation plan to be approved, certain requirements must be met for each group of interested parties.

Generally, in the case of the group of rehabilitation creditors, persons holding voting rights corresponding to at least two thirds of the total voting rights of the creditors belonging to that group must consent.

In addition, in the case of the group of rehabilitation secured creditors, the consent of persons holding voting rights corresponding to at least three fourths of the total voting rights of the secured creditors is required.

In addition, where shareholders or equity holders exercise their voting rights, the rehabilitation plan can be approved only if there is consent corresponding to a majority or more of the total voting rights of the shareholders and equity holders exercising their voting rights.

However, in the case of simplified rehabilitation proceedings, the law relaxes some of the requirements as a special provision, so a rehabilitation plan can be approved with a relatively lower resolution standard than in ordinary rehabilitation proceedings.

Therefore, in the course of conducting corporate rehabilitation, it is important to accurately grasp the status of consent from the groups of creditors and shareholders and equity holders, and to closely review whether the approval requirements are met.

For detailed matters related to corporate rehabilitation, please confirm them through a consultation with an attorney specializing in corporate rehabilitation.