Application for Rehabilitation Proceedings Filed on April 9; Seoul Bankruptcy Court Approves
Rehabilitation Plan Submission Deadline Set for September 4
Daeheung Construction, a mid-sized construction company ranked 96th in construction capability evaluation, has entered rehabilitation proceedings.
Ryu Kwangjin, CEO of Tmon, is attending a hearing held at the Seoul Bankruptcy Court in Seocho-gu, Seoul on the 2nd. The court plans to review the reasons for the rehabilitation applications of Tmon and Wemakeprice, their debt status, and funding plans. Photo by Jo Yongjun jun21@
On April 18, the First Division for Rehabilitation at the Seoul Bankruptcy Court (Presiding Judge Jung Junyoung, Chief Judge Choi Mibok) decided to commence rehabilitation proceedings for Daeheung Construction. Daeheung Construction filed for rehabilitation proceedings on April 9. The court explained, "The company's liquidity has deteriorated due to several factors: a decline in profitability caused by a sharp rise in raw material prices and labor costs following the COVID-19 pandemic; a decrease in demand resulting from the real estate market downturn; an increased burden of principal and interest payments on loans from financial institutions; and the assumption of debt related to delays in completing major business sites."
The deadline for submitting the rehabilitation plan is September 4. The court will review the rehabilitation plan and decide whether to approve the rehabilitation. If the court determines that rehabilitation is not feasible, the company will proceed to bankruptcy. As the court has not appointed an administrator, the current CEO is deemed the administrator. With the commencement of rehabilitation proceedings, Daeheung Construction must submit a list of creditors by May 8. The period for creditors to file their claims is until May 29.
Samjong KPMG will serve as the investigator responsible for assessing the company’s going-concern value and related matters. Daeheung Construction, established in June 1994, is a mid-sized construction company that ranked 96th in the Ministry of Land, Infrastructure and Transport's construction capability evaluation as of last year.
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