DR & AJU made it possible for Gwangneung Leisure Development Co., Ltd. (“Gwangneung Leisure”), which is running Gwangneung Forest C.C. Golf Course, to successfully close its rehabilitation procedure by providing legal advice for Gwangneung Leisure. Gwangneung Leisure proceeded with the first rehabilitation procedure at the Seoul Central District Court but the rehabilitation procedure was abolished as the plan was rejected due to the failure to obtain approvals from the interested parties. Afterwards, DR & AJU applied for rehabilitation procedure commencement on behalf of Gwangneung Leisure.
In the rehabilitation procedure, DR & AJU submitted the rehabilitation plan where the third party purchases the rehabilitation claim for Gwangneung Leisure from the existing rehabilitation creditors, and takes over new stocks to be issued according to paid-in capital increase of Gwangneung Leisure through continuous consultation with the related interested parties. The rehabilitation plan was passed by approvals from the interested parties such as financial institutions, members and business transactions creditors which the Supreme Court decided the authorization.
Particularly, for a rehabilitation company running a golf course, the key point is to obtain approval from member creditors. DR & AJU drew support from the members using the way of maintaining the existing membership-based golf course other than conversion to the public golf course, which finally led to the successful close of rehabilitation procedure. Unlike the rehabilitation M&A of an ordinary golf course, the case of closing the rehabilitation procedure through the method of maintaining the transaction structure and membership system has never existed so far. In that sense, the case is meaningful in creating a precedent for DR & AJU.