D&A LLC successfully advised a construction company (the “Client”) in rehabilitation proceedings.

The Client was a stable mid-sized construction company specializing in civil engineering, construction, and golf course development, ranking within the 200s among South Korea’s contractors as of 2023. However, the Client faced a financial crisis resulting from rising debts, driven by (i) accumulated losses from increased construction material costs and construction delays; (ii) difficulties in raising funds from financial institutions due to tightened regulations; and (iii) a downturn in the construction industry.

Upon our appointment, we immediately assessed the Client’s financial and operating conditions and filed an application for the commencement of rehabilitation proceedings in January 2025. Following the court’s decision to initiate the proceedings, we provided comprehensive legal services throughout the rehabilitation process, to assist the normalization of the Client’s business operations. In particular, when certain creditors’ provisional seizures and attachments prevented the Client from using operating revenues as operating funds despite the issuance of a general injunction, we applied for the cancellation of these compulsory execution measures and ultimately obtained a cancellation order, thereby protecting operating funds and establishing the foundation for business recovery.

Subsequently, we obtained court approval of the rehabilitation plan just ten months after filing the application for commencement of the proceedings, and a court decision to close the proceedings only two months later. As a result, the rehabilitation procedures were successfully completed within one year of the initial application, an exceptional outcome for a construction company.

Rehabilitation proceedings involving construction companies are generally prolonged, as they typically involve multiple construction sites and complex interests of numerous creditors. In contrast, this case was successfully completed in a remarkably short time, underscoring our firm’s ability to closely coordinate attorneys and efficiently manage the proceedings, by drawing upon our extensive expertise and experience across specialized practice areas.