SAMBU Construction, ranked 71st in construction capability assessment, has filed for corporate rehabilitation procedures (court receivership). Following Shin Dong-A Construction and Daejeo Construction this year, more construction companies are opting for court receivership.
On 24th, SAMBU Construction announced that it had applied for the commencement of rehabilitation procedures at the Seoul Rehabilitation Court following a decision by the company's board.
SAMBU Construction noted the reason for the application is "to normalize management and preserve value as a going concern," adding that "there will be a determination on the commencement of rehabilitation procedures through the review of the application and accompanying documents submitted by the company at the Seoul Rehabilitation Court."
SAMBU Construction has faced operating losses since 2020. As of the end of September last year, the company's debt ratio stood at 838.5%. After receiving an "unqualified" audit opinion from an external accounting firm in the first half of last year, the Korea Exchange designated SAMBU Construction as a management issue in August of last year.
Founded in 1955, SAMBU Construction is the first construction company to obtain a domestic civil engineering and construction license. The company also filed for rehabilitation in court in 2015 due to deteriorating financial conditions but graduated from it in 2017.