Securing Approval and Confirmation of a Rehabilitation Plan Despite Opposition from Independent Creditors

1. Overview of the Case

In a recent corporate rehabilitation proceeding, we created a case in which a rehabilitation plan was successfully approved (resolved) and confirmed despite strong opposition from an independent creditor, helping the client company normalize its management. This case involved a small and medium-sized enterprise that had entered rehabilitation proceedings due to prolonged management difficulties and that submitted a rehabilitation plan with the consent of its major creditors, but one independent creditor among the rehabilitation-secured creditors actively opposed it. Unlike the majority of creditors, this creditor had separate interests, so its opposition was a situation that could have a significant impact on the entire rehabilitation proceeding.

Focusing on the fact that the key issue in this case was the judgment as to the "fairness and feasibility of the rehabilitation plan," we concentrated on proving that the rehabilitation plan substantively conformed to equity for all creditors and did not objectively cause disadvantage even to the rehabilitation-secured creditor. Based on meticulous preparation, including analysis of the rehabilitation plan's formulation process and the interests among creditors, and the development of legal counter-logic against the opposing creditor's grounds for opposition, we succeeded in persuading the court.

As a result, the Seoul Rehabilitation Court judged that the rehabilitation plan was feasible enough to faithfully achieve the purpose of the rehabilitation proceeding and did not undermine equity among creditors, and finally confirmed the rehabilitation plan. In particular, the fact that the court, while there was opposition from an independent creditor, respected the resolution result of the overall creditors' meeting and rendered a decision confirming the rehabilitation plan, may carry important precedential significance for similar rehabilitation proceedings in the future.

This case is a representative success story showing that Insight Law Firm can maximize the client's prospects of rehabilitation through outstanding analytical ability and strategic response even in cases entangled with complex interests and sensitive legal issues. In particular, the fact that we coordinated the positions of various stakeholders such as rehabilitation creditors, rehabilitation-secured creditors, and shareholders and proved the feasibility of the rehabilitation plan is a result that attests to our firm's practical capability and negotiation skills.