Three key affiliates of Utop Group, a mid-sized company based in Gwangju and South Jeolla, received court approval to begin rehabilitation proceedings from the Gwangju Bankruptcy Court. This came after the Seoul Bankruptcy Court ended the proceedings and the group reapplied to the court in its home region.
The Gwangju Bankruptcy Court's First Bankruptcy Division said on the 16th it approved the commencement of rehabilitation proceedings for Utop Construction, Utop D&C, and Utop Engineering.
The court will conduct the period to review rehabilitation claims and secured rehabilitation claims from July 14 to Aug. 11, and ordered each company to submit a rehabilitation plan by Sept. 15.
Utop Group filed corporate rehabilitation proceedings with the Seoul Bankruptcy Court in Oct. last year for its three core affiliates amid a liquidity crunch. However, in April, the Seoul Bankruptcy Court decided to end the proceedings, judging the liquidation value to be greater than the value of continuing operations.
Afterward, instead of appealing, Utop Group reapplied for rehabilitation to the newly established Gwangju Bankruptcy Court this year, and the Gwangju court reached a different conclusion from the Seoul court.
As of 2024, Utop Construction is a mid-sized builder ranked 97th in construction capability evaluation. Utop Group has expanded its business from construction into hotels, leisure, and renewable energy, but has struggled due to a construction downturn and deteriorating profitability.
Utop Group has participated in design and supervision for major local facilities such as Gwangju Metropolitan City Hall and South Jeolla Provincial Government, the Asia Culture Center, Gwangju World Cup Stadium, and Kia Champions Field.