Rehabilitation proceedings are underway for Byeoksan Engineering, which ranked 180th in construction capability evaluation as of last year.
The Seoul Rehabilitation Court, Rehabilitation Division 16 (Chief Judge Won Yong-il), decided to commence rehabilitation proceedings for Byeoksan Engineering on the 19th. The deadline for submitting the rehabilitation plan is June 20.
The court stated, "Significant losses occurred in the chemical engineering design, procurement, and construction (EPC) and overseas construction project sectors, making it difficult to raise funds and repay principal and interest on financial debts due to a downgrade in credit rating. Concerns about the realization of payment guarantee obligations related to Byeoksan Power and others have made normal company operations difficult."
When deciding to commence the rehabilitation proceedings, the court decided not to appoint a separate manager. Accordingly, the current representative is considered the manager, and the current executives will manage the company during the rehabilitation process.
The court ordered Byeoksan Engineering to prepare and submit a list of creditors by the 2nd of next month. Creditors must file creditor claims with the court by the 17th of next month. However, if included in the list of creditors prepared by the company, separate creditor claims are not required. The deadline for creditor investigation is May 2.
The investigation committee responsible for evaluating the company's going concern value and liquidation value will be handled by Samhwa Accounting Corporation. The investigation report must be submitted by May 16.
Meanwhile, Korea Ratings downgraded Byeoksan Engineering's unsecured bond credit rating from 'BB+ (negative)' to 'D'.
© The Asia Business Daily(www.asiae.co.kr). All rights reserved.
