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Rehabilitation & Bankruptcy

Atlas Legal provides specialist support for companies in financial distress — covering court-supervised rehabilitation, bankruptcy, workout, and debt restructuring. In rehabilitation, we help companies restructure debt under court supervision while continuing operations. In bankruptcy, we maximize residual asset value for fair distribution to creditors. In workout proceedings, we negotiate debt restructuring with creditor financial institutions quickly, without court involvement.

Timing is everything in rehabilitation. The earlier specialist counsel is engaged, the more options remain available. Protective measures and a comprehensive stay order can halt creditor enforcement actions, and the Debtor-in-Possession (DIP) mechanism allows existing management to retain control while restructuring debt. Once a rehabilitation plan is approved, principal reductions, interest waivers, and extended repayment periods become possible.

Through the ADVOC global network (80+ countries) and Lex Africa, we handle overseas subsidiary liquidation, cross-border debt recovery, recognition of foreign insolvency proceedings under the UNCITRAL Model Law, and international restructuring. Our collaboration with accounting firms, management consultants, investment banks, and appraisal firms provides integrated coverage from financial due diligence and asset valuation through M&A advisory.

Services

Corporate Rehabilitation (Court-Supervised)

Filing rehabilitation petitions, obtaining protective measures and comprehensive stay orders, creditor claim investigation and determination, rehabilitation plan drafting, and representation at creditor meetings. Retention of management control through the Debtor-in-Possession (DIP) mechanism

Corporate Bankruptcy

Filing bankruptcy petitions, coordinating with the bankruptcy trustee, creditor claim investigation and determination, asset liquidation, and creditor distribution proceedings. Asset value maximization through M&A, auction, and negotiated sale strategies

Workout & Debt Restructuring

Private restructuring through the Council of Creditor Financial Institutions (workout), debt restructuring agreements, and principal/interest reduction and deferral negotiations. Rapid, flexible debt restructuring without court involvement

Creditor Representation

Creditor representation in rehabilitation and bankruptcy proceedings, creditor claim filing and investigation response, voting on rehabilitation plans, avoidance action litigation, and set-off rights. Maximizing creditor recovery rates

Restructuring M&A

Business unit transfers and acquisitions in rehabilitation and bankruptcy, stalking horse M&A, going-concern value realization. Optimal sale strategy developed in collaboration with accounting firms and investment banks

Cross-border Restructuring

Overseas subsidiary handling, cross-border debt recovery, recognition of foreign insolvency proceedings (UNCITRAL Model Law), and cross-border restructuring through the ADVOC 80+ country network

When You Need a Rehabilitation & Bankruptcy Lawyer

  • Creditor enforcement actions or provisional attachments begin: An immediate rehabilitation petition can obtain a comprehensive stay order halting all enforcement. Timing is critical.
  • Debt restructuring with major creditors is needed: A workout (private restructuring) can restructure debt quickly without court involvement — particularly effective when financial institution debt predominates.
  • The business is viable but liquidity has run out: Court rehabilitation is the only mechanism that allows a company to continue operations while reducing and deferring debt — and management control can be retained.
  • Liquidation is unavoidable: Bankruptcy proceedings maximize asset value, ensure fair distribution to creditors, and wind up the corporate entity in an orderly manner.
  • A creditor needs to protect its claims in rehabilitation or bankruptcy: Missing the claim filing deadline results in exclusion from distributions. Whether prior transactions are subject to avoidance must also be reviewed immediately.
  • A restructuring involving overseas subsidiaries is required: Bankruptcy law, company law, and labor law differ by jurisdiction. We coordinate with local specialist counsel through the ADVOC global network.

Representative Matters

Workout

Mid-size company workout negotiation — private restructuring through the Council of Creditor Financial Institutions achieved partial principal reduction, interest deferral, and extended repayment terms, completing debt restructuring within six months without court involvement

Creditor

Creditor representation in rehabilitation — represented creditors objecting to an inadequate rehabilitation plan, demanded plan revisions and exercised voting rights, improving the creditor recovery rate

Bankruptcy

Real estate developer bankruptcy — coordinated with the bankruptcy trustee to develop a real estate asset disposal strategy, realized going-concern value through M&A, and maximized creditor recovery rates

Cross-border

Integrated restructuring of Korean parent and overseas subsidiaries — coordinated with ADVOC local counsel to liquidate overseas subsidiaries and settle their claims and obligations in parallel with the Korean parent’s rehabilitation proceedings