The case holding that since reorganization claims scheduled to convert into investments under the company reorganization plan are close to actual shares, it does not go against the principle of fairness and fairness that the modified reorganization plan changes the same rights as the stocks of reorganization creditors scheduled to convert into investments.

The case holding that since the right of reorganization creditors to be converted into investment according to the company reorganization plan is confirmed to be unable to claim payment of money to the reorganization company by the alteration of the right of the reorganization plan and to be converted into stocks in future, its substance is close to stocks rather than bonds, and therefore, it cannot be said that the modified reorganization plan is contrary to the idea of fairness and fairness to make the same change in rights as the stocks of the reorganization creditors to be converted into investment into investment.

[1] Article 233(1)2 of the Company Reorganization Act and Article 234(1)4 of the Company Reorganization Act

Uniform Heavy Industries Ltd.

For Ethical purposes

For reorganization creditors in the reorganization plan to be converted into investment, the provisions on protection of rights, such as Section 4, Section 2, Section 9, Section 3, Section 2, of the Attached Reorganization Plan, shall be established, and the plan for modification of the reorganization plan shall be approved.

On November 7, 2002, the revised plan was submitted by the administrator on February 4, 2003, and the revised plan was approved on February 4, 2003 (hereinafter referred to as the "amended plan of this case") with the consent of at least 4/5 of the total voting rights of the general security holders at an open meeting of interested parties equivalent to at least 180,897,420,622 per 95.43 per cent of the total voting rights of the general reorganization creditors, and with the consent of at least 102,516,646,154 per cent of the total voting rights of the general reorganization creditors, the consent of at least 2/3 of the company's total voting rights of at least 102,55,483 per cent of the total voting rights of the reorganization security holders was not obtained, but the total amount of the voting rights of at least 196,360 per cent of the total voting rights of the reorganization creditors in this case was not subject to the consent of at least 19630.296

Therefore, considering the interests of reorganization security holders, reorganization creditors, workers, and all other interested persons of reorganization company, the review of whether to approve the change plan of this case, and the review of the contents, nature, and change of rights of reorganization reorganization claims in the reorganization creditors scheduled to be converted into investment which was not passed

The reorganization creditor's proposed debt-to-equity swap is composed of reorganization claims for which a debt-to-equity swap has been postponed at the creditor's request (hereinafter referred to as "debts for debt-to-equity swap"), unregistered guarantee claims due to the creditor's guarantor for the reorganization company, and non-determined indemnity claims due to the guarantor for the reorganization company. According to the original reorganization plan, if there is no application for debt-to-equity swap during the period of the reorganization plan, the claims for debt-to-equity swap shall be exempted from the last year of the reorganization plan, and if it is confirmed that the claims for debt-to-equity swap are not repaid from the principal debtor, 50% of the principal shall be exempted, and the remaining 50% of the principal shall be exempted from the total amount of interest, and if the amount not repaid from the principal debtor is not determined by the last year, the total amount of principal shall be exempted from the total amount of interest.

On the other hand, the amendment plan of this case stipulates that a debt-to-equity swap shall include a debt-to-equity swap, 50% of a debt-to-equity swap, 50% of a debt-to-equity swap, and the remaining 50% of a debt-to-equity swap shall be exempted, and that a debt-to-equity swap shall be the total amount of a debt-to-equity swap at the time of payment by a financial institution. The conditions of such debt-to-equity swap are the same conditions as the above bonds

According to the contents of the original reorganization plan, it is confirmed that the rights of reorganization creditors scheduled to convert into equity cannot be claimed against the reorganization company due to the alteration of the rights of the original reorganization plan, and that the reorganization company should be converted into future stocks, and its substance is close to stocks rather than bonds. Therefore, it cannot be said that the revised reorganization plan of this case is contrary to the ideology of fairness and equity to make changes in rights equal to the stocks of reorganization creditors scheduled to convert into equity.

On the other hand, since 2005 when the principal repayment period has arrived at, the reorganization company shall repay the principal and interest of the reorganization claim, but in light of the current financial structure or business performance of the reorganization company, it is not possible for the reorganization company to repay the above amount. Thus, the original reorganization plan may not be implemented unless special measures are taken to change additional rights and to raise financial resources for repayment, and if the reorganization procedure is abolished under Article 276 of the Company Reorganization Act, bankruptcy liquidation for the reorganization company shall be conducted. However, if the reorganization company is liquidated bankrupt, the liquidation value shall be appropriated for public-interest bonds and securities, and there is no share to be distributed to the reorganization creditor or shareholders.

As such, reorganization creditors in the reorganization creditors plan to convert into investment are in the same position as shareholders, and the reorganization creditors in the reorganization company cannot receive any dividends if the reorganization company goes bankrupt due to its bankruptcy, and at the time of the submission of the modified reorganization plan, voting rights have not been granted to shareholders in excess of the assets, more than 90% of general reorganization creditors, more than 70% of general reorganization creditors, and more than 10% of general reorganization creditors and 100% of reorganization security holders scheduled to convert into investment agree with the modified reorganization plan in this case, and upon approval of the modified reorganization plan in this case, the reorganization company will be given an opportunity to continue its operation. Considering all circumstances such as the reorganization reorganization reorganization of the company and reorganization guarantee, this is consistent with the purpose of the Company Reorganization Act, which is consistent with the purpose of the company reorganization plan, and it is not resolved because the modified reorganization plan in this case failed to obtain the legal majority of the reorganization creditors' consent under Article 234 (1) 4 of the Company Reorganization Act, but it is determined to meet the requirements for approval of reorganization creditors, etc.

Judges' Change Sheet (Presiding Judge)