The restructuring procedures for food tech startup Jeongyukgak and organic food seller Green Village have commenced.
The Seoul Bankruptcy Court's Restructuring Division 18 (Chief Judge Yang Min-ho) decided on the 4th to initiate restructuring procedures for Jeongyukgak and Green Village. This day marks the application date for the restructuring procedures. The deadline to submit the restructuring plan is until September 29.
The court noted, "Due to the nature of debtor companies engaged in franchise or distribution businesses targeting general consumers, a delay of even one day in the decision to commence restructuring procedures could lead to heightened anxiety among partner companies and consumers, risking a halt in deliveries or sales activities altogether."
Along with the decision to initiate restructuring procedures, the court has also granted comprehensive permission to continue operations.
The court stated, "It is necessary to prevent business interruptions due to the restructuring application and to ensure normal operations, preserving the going concern value of debtor companies and minimizing disruptions among the market and employees," adding that it also helps protect the interests of about 200 franchisees and their workers, as well as general consumers.
The court has not appointed a separate trustee. Accordingly, the current representatives will act as trustees, allowing the existing executives to continue managing the company throughout the restructuring process.
Jeongyukgak and Green Village must compile and submit a list of creditors by the 21st. Creditors must report their claims to the court by the 4th of next month. If included in the creditor list prepared by the company, separate reporting is not required. The deadline for creditor investigations is until August 18.
The investigators tasked with evaluating the company's going concern and liquidation values will be from Shinhan Accounting Corporation. Their report must be submitted by September 1.
If Jeongyukgak and Green Village submit a restructuring plan, the court will review it and decide whether to approve the restructuring. If it determines that there is no possibility of restructuring, it will lead to bankruptcy.
Jeongyukgak is a fresh meat and seafood distribution company founded in 2016. In 2022, it acquired Green Village, an organic food distribution company under Daesang Holdings, for 90 billion won. Jeongyukgak and Green Village have been facing difficulties due to changes in external environments such as reduced consumer spending and sluggish investment, as well as internal operational issues.