이 누리집은 대한민국 공식 전자정부 누리집입니다.
Biz News Korea(Eng)
Korean authorities mull prepackaged bankruptcy program for troubled companies
- Collected
- 2016.11.07
- Distributed
- 2016.11.08
- Source
- Go Direct
이미지 확대According to related sources, financial authorities are positively looking into the idea put forward by bankruptcy courts and will form a joint task force this month to map out a new platform on corporate reorganization to save time and public resources spent on troubled companies heading for bankruptcy court.
The newly-appointed deputy prime minister for economy Yim Jong-yong is said to be keen on the idea of mixing the best of out-of-court and court restructuring program for financially-strapped companies worth saving by offering protection from debtors and extra emergency liquidity from creditors.
The major drawback of voluntary agreement and workout program is that it only aims to reduce bank debt levels, not overall corporate debts including commercial debt. On the other hand, the court receivership enables a strong debt restructuring of all kinds but has disadvantage of being difficult to receive funding from banks.
Such pre-packaged solution could have been better arrangement for Hanjin Shipping whose filing for court receivership wrecked havoc on the country’s cargo trade.
Under pre-negotiated terms, a financially-troubled company would be able to get necessary funding support from creditors once debts are eased through bankruptcy court program, helping it to get back on its feet faster than lengthy and strict court receivership.
By Jung seok-woo and Kim Yoon-jin
[ⓒ Pulse by Maeil Business News Korea & mk.co.kr, All rights reserved]