1. Company information
Ilsong Development Co., which was established on April 27, 1983, engages in the operation of golf courses, and travel and leisure business. 바카라가이드 operates Lake Hills Yongin Country Club consisting of 27 holes located in Namsa-myeon, Cheoin-gu, Yongin-si, Gyeonggi-do and Lake Hills Ansung Golf Club consisting of a 9-hole public golf course located in Yangsung-myeon, Ansung-si, Gyeonggi-do.As of November 2018, 바카라가이드’s capital was impaired with capital of KRW93 billion and liabilities of KRW283 billion. A large number of members of the golf courses operated by 바카라가이드 requested it to return their admission deposits, but 바카라가이드 was in the state of liquidity crunch. Consequently, it had to file for a rehabilitation proceeding. The appraisal value of the golf courses owned by 바카라가이드 was about KRW230 billion.바카라가이드 used the Autonomous Restructuring Support Program, which is provided by Seoul Rehabilitation Court (“ARS Program”). The ARS Program allows creditors to procced with private restructuring negotiations through certain procedures such as due diligence and agreement to restructuring plans even after the rehabilitation proceeding has been filed.
By utilizing the ARS Program, 바카라가이드 intended to obtain consent from creditors as many as possible and to file and obtain approval for the P-Plan. Further, 바카라가이드 wished to attract investors, thereby expeditiously getting out of the rehabilitation proceeding.
2. Proceeding
바카라가이드 initially intended to persuade creditors and investors while it was under the ARS Program in order to close the rehabilitation proceeding as soon as possible. However, as there were many potential buyers, 바카라가이드 faced a problem with obtaining a concerted opinion from its members and creditors. It was unable to secure the affirmative votes of at least 50% of its creditors which were required to apply for the P-Plan.
Thereafter, the rehabilitation of 바카라가이드 was proceeded with in accordance with the general rehabilitation procedure. As Ilsong Development, Ramid Group, Hallim Construction and the Construction Guarantee Cooperative expressed intention to buy 바카라가이드, there were four rehabilitation plans submitted to the court. Seoul Rehabilitation Court held a meeting with related persons on October 18, 2019 to vote for the approval of one of the four rehabilitation plans. However, there was no rehabilitation plan that obtained the required votes for approval as Ilsong Development, Ramid Group, Hallim Construction and the Construction Guarantee Cooperative obtained 44.78%, 14.02%, 37.2% and 35.08% of votes, respectively.
The court held the second meeting on November 22, 2019. The rehabilitation plan submitted by Hallim Construction finally satisfied with the approval requirements, and 바카라가이드’s rehabilitation proceeding was closed on January 20, 2020.
Hallim Construction purchased 바카라가이드 by investing KRW270 billion.
3. Our role
Attorneys Roh Seok Jun, Cho Dong Hyun and Lee Min Hoon represented 바카라가이드 to take care of the rehabilitation proceedings by utilizing the ARS Program and the P-Plan. Even though there were some unexpected changes, they eventually helped 바카라가이드 find an appropriate buyer and carry on business.
