Court Prohibits Rehabilitation Procedures Shindonga Construction's Asset Freezing, Compulsory Execution, etc.

A court has imposed a one-day freeze on assets and bonds at Shin Dong-A Construction, which applied for rehabilitation due to the real estate recession.

The Seoul Rehabilitation Court issued a conservation and comprehensive prohibition order to Shin Dong-A Construction this afternoon (7th).

The preservation disposition is a measure that prevents the debtor from arbitrarily disposing of the company's business and property to prevent it, believing that the debtor may flee or conceal the property before the decision to commence the rehabilitation process.

In addition, the comprehensive prohibition order is a procedure that freezes creditors from securing the company's major assets during the auction process, such as compulsory execution and seizure.

Earlier, Shin Dong-A Construction received an application yesterday to the court to initiate corporate rehabilitation procedures,

Shindonga Construction filed for a corporate financial structure improvement in 2010 and was released from court five years ago, but is in a management crisis again.