The meaning of "processing net" under Article 38 (5) of the Company Reorganization Act

The term "processing network" in subparagraph 5 of Article 38 of the Company Reorganization Act means the possibility that a company may independently conduct industrial activities by continuously obtaining profits from its management in accordance with the reorganization plan and thereby repaying its liabilities and discharging its liabilities.

Article 38 subparagraph 5 of the Company Reorganization Act

Supreme Court Order 92Ma468 Dated November 2, 1992 (Gong1993Sang65) and Order 94Ma507 Dated September 22, 1994 (Dong)

Song-Unki Inc.

Seoul High Court Order 93Ra71 Dated February 17, 1994

The reappeal is dismissed.

The grounds of reappeal are examined.

Article 38, subparagraph 5 of the Company Reorganization Act refers to the possibility that a company may conduct its industrial activities by continuously obtaining profits from its management according to the reorganization plan, thereby repaying its debts, thereby avoiding the financial failure.

In light of the records, the court below's decision of the court of first instance that held that the re-appellant's company has no possibility of reorganization, such as repayment of debt due to its profit-making profit, and that it constitutes "when there is no possibility of reorganization" under Article 38 subparagraph 5 of the Company Reorganization Act, and maintained the decision of the court of first instance that dismissed the application for commencement of reorganization proceedings for the re-appellant company, and there is no error of law such as the theory of litigation, incomplete hearing, or violation of law of law or logic or experience.

Therefore, the reappeal is dismissed. It is so decided as per Disposition by the assent of all participating Justices on the bench.

Justices Jeong Jong-ho (Presiding Justice)