Court Initiates Rehabilitation Proceedings for Jeongyukgak and Chorokmaeul

Restructuring procedures will proceed for the food tech startup Jeongyukgak and the organic food retailer Chorokmaeul.

On July 4, the 18th Division for Rehabilitation at the Seoul Bankruptcy Court, presided over by Chief Judge Yang Minho, decided to commence rehabilitation proceedings for Jeongyukgak and Chorokmaeul on the same day they filed for court receivership. The deadline for submitting the rehabilitation plan is September 29.

The court stated, "Given the unique characteristics of debtor companies engaged in franchise or distribution businesses targeting general consumers, even a single day's delay in commencing rehabilitation proceedings could significantly increase anxiety among partner companies and consumers, which could in turn lead to the suspension of deliveries, sales, or even the entire business operation."

The court further explained, "It is necessary to prevent business suspension caused by the rehabilitation filing, ensure normal operations, preserve the going-concern value of the debtor companies, and minimize unrest among the market and employees." The court added, "This will also help protect the rights and interests of partner companies, approximately 200 franchisees nationwide, their employees, and general consumers."

The court did not appoint a separate administrator. As a result, the current CEO is regarded as the administrator, and the existing management will continue to operate the company during the rehabilitation process.