After 7 months of entering the corporate rehabilitation process, Shindongah Construction received approval for its rehabilitation plan from the court.
On the 29th, the 3rd Division of the Seoul Rehabilitation Court held a meeting of related parties to deliberate and vote on the rehabilitation plan of Shindongah Construction, and it was approved, the court noted that day.
The court deemed that the requirements for consent were met, with more than three-quarters of the collateral right holders and more than two-thirds of the creditors agreeing, which is a necessary condition for final approval of the rehabilitation plan.
Based on the investigative report, the court valued the company's going concern value higher than its liquidation value. A spokesperson for Shindongah Construction explained that amicable negotiations and relationship maintenance between the company and creditors also positively influenced the approval of the rehabilitation plan.
In the future, Shindongah Construction plans to repay the adjusted debts received from the court through new business activities, asset sales, and the development of its headquarters office according to the rehabilitation plan.
A representative of Shindongah Construction said, "Thanks to the rapid progress of the rehabilitation procedure by the Seoul Rehabilitation Court and the approval of the DIP loan (a loan provided to corporations that have entered the rehabilitation process), we quickly received approval for the rehabilitation plan prioritizing creditor repayment."
The court plans to conclude the rehabilitation process if there are no issues with the implementation plan after reviewing the procedures for debt repayment, equity conversion, and stock reduction of Shindongah Construction.
Shindongah Construction applied for corporate rehabilitation procedures on January 22 due to worsening liquidity from a downturn in the real estate market, an increase in unsold properties, and rising construction costs. This year, Shindongah Construction's ranking in construction capacity assessment is 68th, a drop of 10 places from last year.