SBS, non-limited liability companies specialized in asset-backed securitization (Attorneys Gong Chang-hun et al., Counsel for the plaintiff-appellant)

Administrator of the New CD-style Institute Co., Ltd. (Law Firm Kim & Kim, Attorneys Kim Man-man et al., Counsel for the plaintiff-appellant)

Seoul District Court Order 98Ma7206 dated March 22, 2002

The order of the court below is modified as follows.

In the case, the appellant shall change the protection clause for MSS specialized in the securitization into the attached Form, and authorize the reorganization plan to change the reorganization plan for new CDs corporation.

All appeals filed by MSS limited companies specializing in the securitization and appeals filed by SB limited companies specializing in the securitization are dismissed.

1. Basic facts

According to the records of this case, the following facts are recognized.

A. On January 8, 1999, the reorganization company, a new CD-style corporation (hereinafter referred to as the "mediation company") was for housing construction and supply business, real estate leasing, construction, and supply business, and was decided to authorize the reorganization plan (hereinafter referred to as the "instant reorganization plan") on September 3, 199 upon receipt of the decision to commence reorganization proceedings at the court below on January 8, 199. On September 17, 1999, the reorganization company changed its trade name from Sungwon Corporation to Gwangju Construction Co., Ltd., Ltd., a merger on October 7, 199. On July 23, 2002, the reorganization company changed its trade name into new CD-style Co., Ltd. as the reorganization company.

B. The administrator of the reorganization company submitted a modified reorganization plan on December 10, 201, which mainly deals with debt restructuring on the ground that the implementation of the reorganization plan was difficult due to the reorganization of the housing construction competition, the forecast error of trust proceeds from the Korea Land Trust Co., Ltd., the main financial resources of the reorganization company, and the implementation of the reorganization plan was revised on March 20, 2002, and submitted a revised plan (final revision) which revised the repayment plan to some creditors on March 20, 2002. The reorganization creditors at the meeting of interested persons held on March 20, 202 agreed 78.59% of the total voting rights, but the reorganization creditors including the appellant did not meet the requirements for resolution with the consent of only 57.27% of the total voting rights, and the court of original judgment changed the redemption value as of March 22, 200 (10% discount rate) as of the initial redemption plan, and the subsequent revised plan that does not meet the requirements of the K-A reorganization plan (hereinafter referred to as "M Specialized Stock Company").

C. Details of the security of the appellant, and the summary of the alteration of the appellant’s rights under the reorganization program and the alteration program are as follows.

(1) ABS specialized in BS Asset-backed Securitization in the appellant’s land (hereinafter “SG ABS”)

(a)Contents of the security;

On November 26, 2001, a security was transferred from Seoul Guarantee Insurance Co., Ltd. (the former Guarantee Insurance Co., Ltd., and the latter “Seoul Guarantee Insurance Co., Ltd.”). At the time of the commencement of the instant reorganization proceedings, the amount of the security was KRW 23,238,258,795.

(B) Summary of alteration of rights under the reorganization program

The principal of a security shall be repaid in equal installments for six years from 2004 to 2009, the total amount of interest prior to the commencement of the reorganization proceedings shall be exempted, and the preferential interest rate for 9.5% shall be applied to the interest accrued in 1999, but the interest accrued in 200 to 2003 shall be repaid in equal installments for four years from 200 to 2003.

(C) Summary of change in rights under the modified plan

As of March 202, 23,238,258,795 won as of March 20, 2002; interest 6,985,229,594 won prior to authorization for modification; interest 740,594,748 won prior to the commencement of reorganization proceedings; interest 30,964,083,137 won as principal and interest 9,967,635,662 won (the principal and interest 32.19% of the principal and interest 32.19% of the principal and interest 12,84,227,573 won (the principal and interest 41.48% of the principal and interest) exceeding the above amount under the following conditions; and the rate of recovery of security after reflecting the value of debt-equity swap is about 85.0% (26,308,000,000 won).

(1) The principal shall be 40% of the unpaid balance as of the date of authorization for modification (20,000 won per conversion price), and the remaining 60% shall be paid in installments in 2007 and 2008, respectively, in 30% in 2007 and 40% in 209.

(2) Of interest accrued in 199 from the commencement of reorganization proceedings, the amount calculated by applying 6.5% per annum to the principal shall be paid in equal installments for three years from 2007 to the date of authorization for modification, and the interest accrued in excess of it shall be exempted from the conversion into equity swap (the conversion price shall be 40,000 won per share, and the interest accrued from 200 to the date of authorization for modification.

(3) Interest after the authorization for modification shall be repaid on the date of repayment in the corresponding year, the amount calculated by applying the interest rate of 1% per annum from 2002 to 2004, 3% per annum from 2005 to 2006, and 6.5% per annum from 2007 to 2009, and interest after the authorization for modification on the principal whose conversion of investment into equity and the principal whose conversion into equity is postponed, shall

(2) KRS, the appellant;

(a)Contents of the security;

around November 8, 200, the Korea Asset Management Corporation (former Korea Asset Management Corporation) acquired from the Korea Asset Management Corporation (former Korea Asset Management Corporation). ① The amount of securities as at the time of the commencement of the instant reorganization proceedings is KRW 2,056,023,914 as a collateral on the land of 28 parcels, including 642-6, Seo-gu, Daejeon, Seo-gu, Daejeon, as at the time of the commencement of the instant reorganization proceedings, was KRW 2,056,023,914; ② The amount of the securities as at the time of the commencement of the instant reorganization proceedings is KRW 2/3 of the shares and 98-4, 5 Sungwon-si, Changwon-si, Changwon-si, Changwon-si, Seoul, as at the time of the commencement of the instant reorganization proceedings.

(B) Summary of alteration of rights under the reorganization program

For the principal of a security 2,681,299,466 won, equal installments shall be paid from 2004 to 2009, full interest prior to the commencement of the reorganization proceedings shall be exempted, and the preferential interest rate shall be applied to the interest accrued in 1999 with the upper limit of 9.5% after the commencement of the reorganization proceedings, but the interest accrued in 199 shall be repaid in equal installments for four years from 200 to 2003.

Notwithstanding the provisions of Article 241 of the Company Reorganization Act (hereinafter referred to as the “Act”), the security right of the reorganization security holder shall continue to exist according to the previous order, with the changed claim as the secured claim after the approval of the reorganization plan in this case, and where the reorganization company disposes of the real estate, etc. on which the security right has been created and appropriated for the repayment of the security right, the order of appropriation for the repayment of the security right shall be from the scheduled repayment date of the above reorganization plan in order

(c) a proposed amendment that has been rejected;

(1) The principal shall be 40% of the unpaid balance as of the date of authorization for modification (20,000 won per conversion price), and the remaining 60% shall be paid in installments in 2007 and 2008, respectively, in 30% in 2007 and 40% in 209.

(2) Of interest accrued in 199 from the commencement of reorganization proceedings, the amount calculated by applying 6.5% per annum to the principal shall be paid in equal installments for three years from 2007 to the date of authorization for modification, and the interest accrued in excess of it shall be exempted from the conversion into equity swap (the conversion price shall be 40,000 won per share, and the interest accrued from 200 to the date of authorization for modification.

(3) Interest after the authorization for modification shall be repaid on the date of repayment in the corresponding year, the amount calculated by applying the interest rate of 1% per annum from 2002 to 2004, 3% per annum from 2005 to 2006, and 6.5% per annum from 2007 to 2009, and interest after the authorization for modification on the principal whose conversion of investment into equity and the principal whose conversion into equity is postponed, shall

(d) Protection clause of rights established by the court of original judgment

As of March 20, 2002, the sum of the principal amount of KRW 2,681,299,466, interest rate of KRW 805,976,582, interest rate of KRW 85,452,026 before authorization for modification after commencement of reorganization proceedings, interest rate of KRW 3,572,728,074 shall be the principal amount, and the amount of KRW 2,88,00,000 (80.8%) equivalent to the dividend value at the time of liquidation shall be paid in cash, and the remainder shall be exempted.

The above 2,88,00,000 won shall be repaid in installments from 202 to 2009 as shown in the attached repayment plan Table (1), and the interest calculated by adding 10% per annum to the unpaid balance from March 20, 2002 shall be repaid on the due date (2. 31 in the corresponding year) of each year.

2. Summary of reasons for appeal;

(a) Reasons for appeal by SG ABS, the appellant;

(1) A false determination of the continuing corporate value and the possibility of implementation of the plan to modify the reorganization company;

The court below erred by misapprehending that the continuing corporate value of the liquidation company exceeds 130 billion won by evaluating future sales in light of the conditions of the project, such as the fact that the construction site already secured by the liquidation company in the implementation of the rental apartment and apartment construction project, which is the main power of the reorganization company, is used in around 2004 and the purchase of a new project site is necessary from around 2005, but it is practically difficult to purchase a new project site for the new project due to the limit of the holding fund.

Since the funding balance plan of the reorganization company, which is the premise for the establishment of the amendment plan in this case, is not realistic, there is little possibility of implementation of the amendment plan.

(2) Establishment of a provision on protection of rights due to an error in valuation of liquidation value

In assessing the liquidation value of the above appellant’s securities, as a result of underassessment of the liquidation value by omitting part of the property (hereinafter “security”) which is the object of the security right, the error of authorizing the plan for modification without setting the protection clause of the rights of the appellant, considering that the amount of redemption according to the instant modified plan exceeds the above liquidation value.

The security of the above appellant is a collective building subject to the Act on the Ownership and Residential Building in Ulsan-gu, Ulsan-dong, 402-1 commercial building, Changwon-dong, Changwon-dong, 45-1 commercial building, and 37-1 commercial building which is the object of the above appellant's security. The Seoul Guarantee Insurance, the first acquisitor of the security held by the above appellant, was completed only for the building due to the reason that the land readjustment project, etc. for each building was not completed at the time when the collateral security of each building was acquired. However, since the reorganization company, etc., which is the person who has created the security, promised to provide the registration of ownership of each building's site as an additional security immediately after completing the registration of ownership preservation, each of the above sites should be included in the value of liquidation.

In the case of an aggregate building, the right to use a site shall comply with the disposition of a section for exclusive use owned by a sectional owner, and as long as a separate disposition of a section for exclusive use and a right to use a site is prohibited, the fair trade price of a security, which is the object of the said appellant, shall be not only the building but also the appraised value

In light of each appraisal report prepared by the Dong state appraisal corporation and the Korea Appraisal Board at the time of the establishment of each of the above collective security rights, the liquidation value of each of the securities was excessively low, and the liquidation value of the presumed ordinary interests of the liquidation company was excessively high.

(b) Reasons for appeal by the appellant;

(1) Insufficient protection clause for the said appellant’s security

The order of the court below that approved the above appellant's right protection provision by the court below is unlawful, since the above appellant's right protection provision does not meet the requirements of legitimate right protection provision under Article 234 (1) of the Act.

Article 234(1)4 of the Act provides that "any other method of fair and equitable protection of right holders" shall be construed as respecting the preferential status of security holders and giving satisfaction corresponding to the holder of the right to separate settlement in cases of bankruptcy to the extent that the existence or execution of the right to collateral is equivalent to that of the holder of the right to separate settlement. This does not extend to the protection clause of right established by the court of original instance.

(A) An error in valuation of liquidation value

The term "fair transaction value of rights" means the liquidation value, and the liquidation value of securities is the amount that a security holder can receive when he disposes of the properties of the reorganization company in which the securities are created (to the extent of the amount of the reorganization security right).

In light of the fact that before the administrator of the reorganization company submits the modified plan of this case, the applicant for purchase of the object of the said appellant's security presented a purchase price exceeding the amount of the securities of the appellant, and the appraisal report on the security prepared by the Korea Appraisal Board, etc., the court of original judgment is too low to the amount of appraisal of the security used as the data for calculating liquidation value, and the fair transaction price of the security, which is the object of the said appellant's security, is not reflected.

In the instant reorganization program, the said appellant’s security should be paid by adding interest after the commencement of reorganization proceedings instead of repaying the said appellant’s security, so it is unlawful to determine the provision on protection of rights in comparison with the liquidation value of the said appellant’s security, even though the interest after the commencement of reorganization proceedings is included naturally in the liquidation value excluded.

(B) Long-term installment payments;

According to the reorganization plan of this case, when it is judged that the estimated repayment amount for at least two consecutive years from the date of repayment under the reorganization plan would be delayed for at least six months, or when it is judged that there is no possibility to carry out the business plan under the reorganization plan due to the normal operation of the reorganization company, the administrator shall bear the obligation to apply for the abolition of the reorganization plan. Accordingly, in the case of the abolition of the reorganization procedure for the reorganization company, the above appellant could have immediately exercised the security right and received the claim in lump sum from the proceeds of the disposal of the security, and in the case of the alteration plan, the above appellant may suffer from the danger due to the failure of the repayment plan and the loss due to the decline in the value of the security in whole, the method of payment of liquidation value is considerably fair and unfair, and is unlawful.

The payment of fair transaction value of rights shall mean the payment before the approval decision of a reorganization plan is made or immediately after the approval decision is made, and shall not be deemed to include payment in installments over eight years, such as the modified plan of this case ( even if the protection provision of rights is determined by payment in installments, it shall not be permitted for a long-term period exceeding the period required for the exercise or sale of security rights).

(C) Omission of protection of claims in excess of the liquidation value of the security

Among the above security of the appellant, a claim exceeding the liquidation value of the security should be protected as a reorganization claim, but it is omitted, so the illegal protection clause is an illegal protection clause.

(2) The question of the feasibility of the amendment plan

The revised plan of this case was excessively remotely assessed the future business prospects, such as sales and acceptance of orders by the reorganization company. Since 2005, the new apartment construction site was to be purchased, and its financial ability was not considered to be insufficient, and it did not meet the requirements for the approved plan because it did not meet the requirements for the approved plan.

Considering the construction performance of the reorganization company, domestic contracting order, experience in the apartment sales business and government-funded construction, the implementation performance of the reorganization plan for the last two years, etc., it is rare that the estimated sales revenue can be realized, and it is difficult to see that the cash flow (in particular, the non-cash flow vehicle sales cost and the current items adjustment) has actually occurred, and it is difficult to see that the cash flow has actually occurred.

In addition, in the event of bankruptcy of the reorganization company, the Korea Housing Guarantee Co., Ltd., which guarantees the reorganization company, may acquire and continue to construct the rental apartment built by the reorganization company, even though it causes damage to interested parties, including the small and medium-sized people who want to lease or purchase it.

3. Determination

(a) Relevant provisions of the Company Reorganization Act;

(1) Any property claim against a person other than the company arising due before the commencement of reorganization proceedings or reorganization proceedings, the scope secured by any lien, pledge, mortgage, transfer security right, provisional registration security right, right to lease on deposit basis, or lien existing on company property at the time of the commencement of reorganization proceedings, shall be a security: Provided, That with respect to a claim for damages arising from interest or non-performance or for penalty, it shall be limited to those arising before the day preceding the commencement of reorganization proceedings

(2) A security holder may participate in reorganization proceedings as a reorganization creditor with respect to the portion of the amount of the claim that exceeds the value of the object of the security (if there is a prior security right, the amount obtained by subtracting the amount of the claim secured by such security right from the value of the object of the security right). If the value of the object of the security right and the amount of the secured claim is less than the value of the object of the security right, the security holder shall have voting rights according to the amount of the secured claim (Article 12

(3) The court may decide to authorize reorganization proceedings or programs in conformity with the provisions of the law and only when the program is fair, equitable and feasible (Article 233(1)1 and 2 of the Act).

(4) Even in cases where the meeting of interested persons fails to obtain the consent of those holding voting rights more than the legal amount or number, in respect of the reorganization programs, the court may modify the programs and determine provisions to protect those rights on behalf of the reorganization creditors, security holders or stockholders in that category, and determine the approval of the programs in accordance with one of the following methods (Article 234(1) of the Act).

1. The method of moving property which is the object of the security interest to the new company or transferring it to another person or reserving the company with respect to the reorganization security holder;

2. The method of selling property which is the object of the right in the case of reorganization security holders, company property to be appropriated for satisfaction of the claim in the case of reorganization creditors, company property to be appropriated in distribution of the remaining property in the case of stockholders, at a price not less than the fair market price determined by the court (in the case of property which is the object of security right, the appraisal shall be deemed not to bear any burden due to such right), and

3. Paying the fair trade price of the rights to the rights holder determined by the court;

4. Other methods which fairly and equally protect rights holders in accordance with the provisions of each of the preceding subparagraphs.

(5) If the approval of a reorganization program is decided, the rights of reorganization creditors, security holders, and stockholders shall be modified in accordance with the provisions of the program (Article 242(1) of the Act).

(6) When the decision to authorize a reorganization program becomes final and conclusive, entry in the tables of reorganization creditors or security holders shall have the same effect as a final and conclusive judgment against the company, new company (excluding any new company incorporated by a merger or a split-merger), reorganization creditors, security holders, stockholders of the company, and those who bear obligations or offer security for reorganization (Article 245(1) of the Act).

B. Judgment on the grounds for appeal by SG ABS, the appellant

(1) Evaluation of the continuing corporate value of the reorganization company and the possibility of executing the alteration plan of this case

First, it is difficult to recognize that the adjustment of non-cash flow or current item in the cash flow table of the reorganization company, which serves as the basis for the establishment of the instant change plan, is improper or unrealistic in light of the general principles of accounting as the claimant's assertion.

In addition, considering the previous business performance of the reorganization company, the change of the business execution method after the commencement of reorganization proceedings, the conversion of rental apartments into sales, and the allocation of funds for the purchase of new business sites, it is difficult to view that the reorganization company's future plan, sales plan, fund balance plan, and estimated profit and loss are excessively excessive, and there is no other evidence to deem that the execution of the alteration plan of this case is impossible.

(2) Appraisal of liquidation value of the said appellant’s security

First, considering the average bid rate in the real estate auction procedure in the court where the security of this case is located, it is difficult to recognize that the value of each real estate which is the object of the above appellant's security has been unfairly low.

In addition, even if the disposal of the right to use site is limited as the above appellant's assertion, it is limited to the disposal of the right to use site separately from the section for exclusive use of a building, as long as the ownership transfer registration for the owner of the section for exclusive use of a building has not been completed with respect to the share of the site at the time of the execution of security right, it cannot be said that the right to site becomes the object of auction or that the mortgagee of the right to use exclusive use of a building can obtain preferential payment from the proceeds of sale.

On the other hand, based on the intrinsic value stipulated in the Regulations on the Acquisition of Securities and Exchange, it is not always deemed unreasonable to calculate the amount to be recovered from the conversion into investment of the said appellant’s security, and as long as the amount of cash repayment exceeds the liquidation value of the said appellant’s security, it cannot be deemed that the change of the right in the plan to change the said appellant’s security is unreasonable

C. Determination on the grounds of appeal by the appellant

(1) The question of the feasibility of the amendment plan

In light of the reorganization company's orders for construction works in 2002 and 2003, operating profits, funds balance status, debt repayment status, etc. as shown in the records of this case, the revised plan of this case is deemed to be sufficiently feasible. Thus, the above appellant's assertion is without merit.

(2) Whether the provision on the protection of rights against the above respondent's security is reasonable

"Method of fairly and equally protecting rights holders in accordance with any other subparagraph of Article 234(1)4 of the Act" means guaranteeing the substantial value equivalent to that of the holder of the right to separate settlement in cases of bankruptcy by respecting the preferential status of the security holders.

The liquidation value shall be interpreted as the liquidation value in the case of a security which can be obtained by an obligee due to the abolition of a reorganization procedure, and in the case of a security in which a creditor can obtain through the reorganization procedure, if a security is sold in accordance with the real estate auction procedure by exercising a security right, it shall

In this case where other standards for calculating the fair transaction price of securities are unclear, the value of each real estate which is the object of the securities of the appellant are calculated on the basis of discounted prices by applying the average bid rate of the real estate auction procedure of the court (referring to the actual sale price compared to the appraised value) (refer to the Procedure for Handling the Reorganization of Companies (refer to the Procedure for Handling the Reorganization of Companies (amended Rules No. 768 of April 7, 200)

Generally, the amount calculated by subtracting the average auction expenses from the amount calculated by multiplying the amount calculated by the average successful bid rate according to the auction procedure of the court having jurisdiction over the location of the security, shall be the amount to be actually distributed, and the liquidation value of the security shall be the smaller of the amount of the secured debt and the amount to be actually distributed, and even if the security holder has the highest priority and the amount to be actually distributed exceeds the amount of the secured debt of the security, it shall be reasonable to view that the maximum debt amount (if the amount of

There is no evidence to deem that it is unreasonable to compute the value of a security based on the appraised value that a reorganization company requested to the Korea Appraisal Corporation based on the consideration appraisal value received by the reorganization company ( difficult to conclude that the appraised value of the instant security is inappropriate solely on the circumstance that there was a person who wishes to purchase a security with a purchase price exceeding the amount of the said appellant’s security before submitting the modified plan). Based on this, the assessment of liquidation value of individual

(A) Liquidation value of the security for the land on the 28 parcel, including the Seo-gu Daejeon, Seo-dong 642-6

In general, in the auction procedure, the bid price ratio of the security varies depending on the location or type of the goods. Therefore, it is difficult to deem that the court below calculated the liquidation value of the security of the appellant based on the average bid rate for the “land” of the Daejeon District Court with respect to the land of 28 parcels, such as Seo-gu, Seo-gu, Daejeon District Court.

The average auction cost is 2,201,364,672 won (=3,527,828,000 x 0.64 x 0.975) if the average auction cost is deducted by 2.5% in the Daejeon District Court for land as of September 5, 2001, the amount to be actually distributed is 2,201,364,672 won (=3,527,828,000 x 0.64 x 0.975).

Meanwhile, the proviso of Article 123(1) of the Act recognizes the right to claim damages due to interest or non-performance as a security only if it was created by the day immediately before the decision to commence the reorganization procedure is made, but it is reasonable to view that the changed right itself should be recognized as a secured claim even in cases where the voluntary auction procedure for real estate owned by the reorganization company is in progress due to the change of right under Article 242 of the Act, such as the cancellation of the reorganization procedure, even if the change of right is conducted in accordance with the reorganization plan, in full view of the following: (a) interest after the commencement of the reorganization plan is meaningful to compensate for the loss suffered by the creditor due to the repayment of the claim in installments over a long-term period; (b) interest on ordinary monetary claims is in fact equivalent to the principal; and (c) interest after the commencement of the reorganization plan is in fact equivalent to the principal.

The principal of the first security corresponding to the right to collateral security concerning each of the above real estates was KRW 2,056,023,914, but the right was changed according to the reorganization plan. As of March 20, 202, when exercising the right to collateral security as of March 20, the right which the appellant can exercise within the scope of KRW 3,270,00,000,000, and interest accrued until the time according to the reorganization plan, 683,548,615 [ = 891,428,608 x 2,056,606,023,914/2,681,29,29,466] was totaled of KRW 2,739,572,529 or 2,201,364,672, which is less than the value of each of the above real estates, the court below's determination is reasonable to have been executed by the appellant, 20067,2005 won.

(B) The liquidation value of shares in 2/3 of the 31 shop in Changwon-dong, Changwon-si and the 98-4, 5 Sungwon-si Officetel 11 of the 31 shop in Changwon-si.

According to the above method, as of March 20, 202, the secured debt which the appellant can exercise against the above security is KRW 625,275,552, and KRW 207,879,993 [=891,428,608 x 625,275,52/2, 681, 29, 466] totaled KRW 83,15,545.

However, since the above appellant’s maximum amount of debt regarding each of the above immovables is KRW 832,00,000,000, and the subordinated mortgagee, such as a limited-liability company specialized in the Mad-Surine securitization, the liquidation value of each of the above immovables is KRW 832,00,000, which is the amount for which the above appellant is entitled to preferential reimbursement without considering the appropriateness of the appraisal value of the above immovables or the successful bid rate at the court auction procedure, and therefore, there is no error in the appraisal of liquidation value of each of the above immovables by the court below.

(C) Whether the long-term installment repayment is reasonable

Even if a security is not immediately repaid and a reasonable amount of interest is determined to be paid in installments over a considerable period of time, it is reasonable to view that the method of protecting the rights as stipulated in Article 234(1) of the Act is a method of protecting the rights if the liquidation value is above the current value of the repayment.

The reorganization security in the revised plan of this case shall continue to exist according to the previous order with the claims modified as the secured claim. In the event that the reorganization company disposes of the security, the disposal price shall be used for the repayment of the security. For the 45-1 Sungwon-dong, Changwon-dong, Changwon-si, 31 stores of Changwon-si, 98-4, 5 Sungwon-si, 11 stores of Changwon-si, 31, the above appellant shall sell the security through public sale by means of public sale, etc. and have the authority to dispose of his/her claims immediately after the immediate repayment of his/her claims. The revised plan provides for other reorganization security holders as well as the above appellant. In full view of the fact that it is difficult to adjust the interests of the interested parties and establish the reorganization plan if the immediate repayment of the security of the reorganization company is demanded as a claim for the protection of rights due to financial deficiencies, it is difficult to recognize the amount equivalent to the liquidation value alteration as unlawful.

(D) Absence of protection as reorganization creditor

According to the records of this case, since the estimated recovery rate of reorganization creditors at the time of the reorganization company's bankruptcy liquidation is zero percent, even if the above appellant's security in excess of the value of security is recognized as reorganization claim and no other provision on protection of rights exists, the change plan of this case cannot be deemed unlawful.

(3) Sub-decisions

As seen earlier, it is reasonable to view that the liquidation value of the said appellant’s security is KRW 3,03,364,672 (=2,201,364,672 + 832,00,000). As such, the order of the court below that approved the plan of this case by setting a protection clause to ensure that the total amount of repayment as of March 20, 2002 is equal to the above KRW 2,88,00,000 and the total amount of repayment is equal to the above KRW 2,88,00,000, and that the order of the court below that approved the plan of this case is unlawful.

4. Conclusion

Therefore, although the appellant's appeal is justified within the scope of the above recognition, it is not desirable to cancel the order of the court below in light of the fact that the plan was already implemented for a considerable period of time as well as the majority of the interested parties with respect to the modification plan of this case, and that the above modification plan did not have a small social and economic impact on the society and economy, it is not desirable to cancel the order of the court below. In light of the above various circumstances, if the claim for protection of rights is determined for KAP as shown in the separate sheet for the appellant, it is not against the equity with other reorganization creditors, and it is determined that the above modification plan is legitimate as a whole, and it does not infringe the rights of other interested parties. Thus, the order of the court below to revise the revised plan of this case by applying Article 234(1) of the Act mutatis mutandis to Article 234(1) of the Act and to approve the revised plan of this case, and the appeal of KSABS, which is the remainder of the appeal and appeal, is dismissed.

For the purpose of judge Orsa (Presiding Judge) for profit-making dismissal