Rehabilitation and Bankruptcy Attorney Assistance Case | Approval of the Rehabilitation Plan by Representing the Client in Filing for Corporate Rehabilitation

This is the background of the case as understood by the rehabilitation and bankruptcy attorney.

The client is the representative of a company engaged in automobile parts manufacturing.

As the business continuously expanded in scale, the company made a major investment in new equipment several years ago.

However, shortly afterward, the volume of orders from business partners decreased significantly due to the COVID-19 pandemic, and sales declined.

It is said that, in a poor financial situation due to the expansion of new equipment, when sales also sharply decreased, the debt increased exponentially.

Although there were many difficulties in operations, the client nevertheless resolved to pursue corporate rehabilitation in order to make a fresh start once again.

Accordingly, the client came to a rehabilitation and bankruptcy attorney to request help in obtaining approval of the rehabilitation plan.

The procedure for corporate rehabilitation is as follows.

In addition, to apply for corporate rehabilitation, the following specific standing as a party must be met.

The qualifications to apply for corporate rehabilitation are as follows.

The rehabilitation and bankruptcy attorney calculated and compared the value of the client's company upon liquidation and its value upon continuing the business.

As a result, the value upon continuing the business far exceeded the value upon liquidation.

On this basis, the attorney emphasized that approval of corporate rehabilitation was needed in order to preserve the going-concern value.

Through the mediation of the rehabilitation and bankruptcy attorney, the client company planned to actively utilize a financial structure improvement program.

Through this, it could be expected to raise production efficiency and reduce unnecessary financial costs.

It was emphasized that the financial structure could be improved through approval of the corporate rehabilitation.

After the effects of COVID-19 ended, orders from business partners recovered, and there was reason to expect a revitalization of overseas sales.

In particular, sales were expected to be revitalized in the North American market.

The rehabilitation and bankruptcy attorney calculated the expected revenue after approval of corporate rehabilitation in specific figures and emphasized the need for corporate rehabilitation.

This was a story in which the client's company, which had been in crisis due to increased debt, was able to obtain approval of the rehabilitation plan with the attorney's help.

Corporate rehabilitation has a complex procedure and requires a long process of persuasion and review, so the assistance of an expert is very important.

At Law Firm Daeryun, accountants, tax accountants, and attorneys with expertise in the relevant field form a task force together to prepare a strategy for corporate rehabilitation.

In particular, we provide efficient services for the data review and procedural preparation that take a great deal of time.

If you are experiencing a related issue, we hope you will seek help through a 🔗legal consultation reservation.