인터넷 바카라

1. Case summary

 

Who did Barun represent?

 

Tank Lending 인터넷 바카라., Ltd.

 

Case background

 

After being transferred 16 lots and buildings thereon (located in Hweongsung-gu, Gwangwon-do) (collectively, the “real estate”), and keun-mortgage and loans (about KRW2 billion) created over the real estate by Nonghyup, 인터넷 바카라 requested a random auction for the real estate. The debtor applied for a rehabilitation procedure to delay the auction, and the decision to start the rehabilitation proceeding was made. As the auction was suspended for about one year, 인터넷 바카라 suffered from unexpected enormous damage. Against this backdrop, 인터넷 바카라 applied for the cancellation of the rehabilitation proceeding with a rehabilitation court.

 

Litigation

 

An investigator evaluated that the liquidation value of the company operated by the debtor was KRW2.1 billion and the value of the company as going concern was KRW5.6 billion, respectively. The investigator prepared and submitted a report in which it determined that it would be proper the court to sustain the rehabilitation proceedings because the value of the company as going concern exceeded the liquidation value. The administrator submitted a rehabilitation plan in which the debtor would repay debts to 인터넷 바카라 in installments for seven years on the basis of the report.

 

인터넷 바카라, which was a rehabilitation security interest holder, argued that it could not trust the value of the debtor as going concern in the report because the value had been miscalculated on the basis of wrong materials and the rehabilitation proceeding should be cancelled because the actual value of the debtor as going concern was less than the liquidation value, and accordingly, the rehabilitation plan should have not been approved.

 

2. Barun’s role

 

Representing 인터넷 바카라, we calculated the operating profit of the debtor in collaboration with accountants in order to demonstrate that the investigator had not properly checked basic elements used to calculate a company’s value as going concern such as the sales cost, sales volume, farming land size and discount rate, and had calculated the value in the manner that had been unilaterally favorable to the debtor. Our calculation result showed that the debtor’s value as going concern was far less than the liquidation value of KRW2.1 billion as it was revealed that the debtor’s actual operation profit was -KRW500 million, not KRW3.9 billion that had been calculated by the investigator.

 

3. Court’s decision and implications

 

The Chuncheon District Court accepted 인터넷 바카라’s argument that the debtor’s value as going concern had been miscalculated and exaggerated as the investigator had used wrong information. The court promptly held a meeting of related persons and decided to cancel the rehabilitation proceeding.

 

Recently, the number of applications for rehabilitation has increased due to the economic downturn caused by Covide-19 pandemic. Among them, there are frequent cases of exploiting the rehabilitation procedures by simply applying for rehabilitation as a way to delay the real estate auction process. When a debtor applies for a rehabilitation procedure, it is very common for creditors to suffer huge financial losses because the auction process is suspended for about one or two years.

 

This case has an implication in that we protected the rehabilitation security interest holder’s interest and successfully convinced the court to cancel the rehabilitation proceeding early by directly impeaching the investigator’s evaluation that would be used to delay the real estate sale procedure by taking advantage of the rehabilitation proceeding.