Prepackaged Bankruptcies for Stalled Daewoo Workouts
The government plans to drastically shorten the workout period of Daewoo flagship subsidiaries Daewoo Motor and Daewoo Electronics by putting them through a new prepackaged bankruptcy process.
Source : Chosun Ilbo
The government plans to drastically shorten the workout period of Daewoo flagship subsidiaries Daewoo Motor and Daewoo Electronics by putting them through a new prepackaged bankruptcy process. According to the Ministry of Finance and Economy (MOFE) Monday, it has already completed talks with the Ministry of Justice (MOJ) on the introduction of prepackaged bankruptcies, which greatly simplify procedures to activate court control over firms undergoing workouts. Currently, it can take as long as 18 months before a firm is placed under court control, but the new prepackaged system can see court procedures completed in just 2 months. MOFE said that workout procedures for the two Daewoo subsidiaries have been delayed either due to disagreements between creditors or because of the resistance of minor shareholders to the outcome of the annual general meeting
Chosun Ilbo
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