If I file for corporate rehabilitation, can the company continue operating?

Even if you file for corporate rehabilitation, in principle, the company's business can continue to be maintained.

This is because corporate rehabilitation is not a procedure to liquidate a company, but a system to maintain the business while adjusting debts and normalizing management.

Therefore, when the court issues a decision to commence rehabilitation proceedings, the company can continue its existing business while proceeding with rehabilitation procedures.

However, after filing for corporate rehabilitation, the company's operating methods change in some respects.

First, important management actions such as disposing of major company assets, new borrowing, and providing collateral must receive court permission.

Also, the company's financial situation and business status must be reported to the court, and a rehabilitation plan must be prepared regarding how to adjust and repay debts during the rehabilitation procedure.

Also, after filing for corporate rehabilitation, when the court issues a stay order or comprehensive prohibition order, procedures such as compulsory execution, attachment, and provisional attachment may be suspended or restricted, allowing the company to secure time to maintain business and reorganize its financial structure.

During this period, the company continues business to generate profits and uses this as a basis to repay debts in installments to pursue rehabilitation.

Daeryun Law Firm comprehensively analyzes the company's financial structure and debt situation in the corporate rehabilitation filing process and supports the entire process from rehabilitation feasibility review to rehabilitation plan establishment.

We also collaborate with internal accountants and tax accountants to prepare financial data analysis and debt adjustment strategies, derive realistic rehabilitation plans suited to the company's situation, and provide close assistance to smoothly perform complex procedures including court permission matters.