Article 1(Purpose) #
The purpose of this Decree is to provide for matters delegated by the Corporate Restructuring Promotion Act and those necessary for the enforcement thereof.
Article 2(Appointment, Replacement, etc. of Principal Creditor Bank) #
(1) The amount of credit extended under the former part of subparagraph 3 of Article 2 of the Corporate Restructuring Promotion Act (hereinafter referred to as the "Act") shall be based on the amount as at the end of the month immediately before the principal creditor bank is appointed.
(2) Appointment of the principal creditor bank under the latter part of subparagraph 3 of Article 2 of the Act shall require agreement reached after consultation among creditor banks: Provided, That such consultation process may be omitted where the principal creditor bank is to be appointed based only on the amount of credit extension, as there has been no principal creditor bank.
(3) The principal creditor bank appointed under paragraph (2) shall notify the Governor of the Financial Supervisory Service established under the Act on the Establishment, etc. of Financial Services Commission (hereinafter referred to as the "Governor of the Financial Supervisory Service") of such appointment
(4) Replacement of the principal creditor bank under the latter part of subparagraph 3 of Article 2 of the Act shall require agreement among creditor banks at the request of the relevant enterprise or creditor banks. In such cases, the new principal creditor bank shall notify, without delay, the Governor of the Financial Supervisory Service of such replacement.
(5) In any of the following cases, the Governor of the Financial Supervisory Service may, notwithstanding the former part of paragraph (4), replace the principal creditor bank, taking into consideration the opinions of the relevant enterprise and creditor banks, the size, trends and composition of credit extended by each creditor bank, the size and composition of amount of collateral acquired by each creditor bank:
1. Where a creditor bank requests the replacement for the reason that no agreement has been reached on such replacement of the principal creditor bank;
2. Where the relevant enterprise objects to the replacement of the principal creditor bank under paragraph (4) and requests further replacement thereof.
(6) The Governor of the Financial Supervisory Service shall notify the relevant enterprise or creditor banks of the appointment or the replacement of the principal creditor bank made under paragraph (2), (4) or (5).
Article 3(Agreement) #
"Matters prescribed by Presidential Decree" in Article 8 (2) 7 of the Act means any of the following:
1. Matters concerning investment significantly affecting the cash flow of an enterprise, acquisition or transfer of major assets, etc.;
2. Matters concerning corporate governance restructuring, such as the organization of the board of directors;
3. Matters concerning measures to be taken where an enterprise fails to comply with the agreement set forth in Article 8 (1) of the Act or does not implement the plan as stated in the agreement;
4. Other matters necessary for the normalization of management of an enterprise and determined by agreement between the enterprise and the Council.
Article 4(Administrative Methods, etc. of Council) #
(1) If the principal creditor bank intends to convene a meeting of the Council which consists of the creditor financial institutions (hereinafter referred to as the "Council") under the forepart of Article 15 (3) of the Act, it shall notify the creditor financial institutions (including a person, other than creditor financial institutions, who has prepared a written undertaking under the main sentence of Article 15 (4) of the Act and a creditor, other than creditor financial institutions, who has prepared a written undertaking under Article 15 (5) of the Act), the relevant enterprise showing signs of insolvency and the Mediation Committee under Article 5 of the matters concerning date and time, place, purpose, etc. of the meeting at least three days (prior to seven days, if the meeting is convoked for the purpose of deliberation and passing resolution on the matters set forth in Article 17 (1) 7 of the Act) prior to the prearranged date of the meeting: Provided, That the same shall not apply in cases of emergency.
(2) In cases where a creditor financial institution, other than the principal creditor bank, requests to convene a meeting of the Council under the latter part of Article 15 (3) of the Act, it shall submit to the principal creditor bank a document stating the purpose of convocation of the meeting and matters necessary for such convocation, such as the status of the amount of credit extended by each creditor financial institution, etc.
(3) The Council may, if necessary to facilitate the operation thereof, pass a written resolution on such matters as are determined by its resolution in advance.
(4) The relevant enterprise showing signs of insolvency, which has received the notification under paragraph (1) may submit its opinion, either orally or in writing, to the Council through the principal creditor bank.
Article 5(Organization of Mediation Committee) #
The Committee for Mediation of Creditor Financial Institutions established under Article 22 (1) of the Act (hereinafter referred to as the "Mediation Committee") shall be comprised of the following persons:
1. One person selected by the Chairperson of the Korea Financial Investment Association established under the Financial Investment Services and Capital Markets Act;
2. One person selected by the Chairperson of the Insurance Association established under the Insurance Business Act;
3. One person selected by the Chairperson of the Korea Chamber of Commerce and Industry established under the Chambers of Commerce and Industry Act;
4. One person selected by the Chairperson of the Korean Institute of Certified Public Accountants established under the Certified Public Accountant Act;
5. One person selected by the Chairperson of the Korean Bar Association established under the Attorney-at-Law Act;
6. Two persons selected by the Chairperson of the incorporated association, the Korea Federation of Banks established under Article 32 of the Civil Act after obtaining approval from the Financial Services Commission.
Article 6(Duties, etc. of Mediation Committee) #
(1) "Matters prescribed by Presidential Decree" in Article 22 (4) 1 of the Act means the following:
1. Divergence related to the amount of credit extension and the exercise of voting right;
2. Divergence related to a decision on the readjustment of claims and the apportionment rate of new credit extension;
3. Other matters which are referred to the Mediation Council by resolution of the Council.
(2) "Matters prescribed by Presidential Decree" in Article 22 (4) 6 of the Act means any recommendation with respect to the methods of the administration of the Council and the granting of voting right to efficiently administer the Council.
Article 7(Administration, etc. of Mediation Committee) #
(1) If the Mediation Committee receives an application for mediation filed by a creditor financial institution under the former part of Article 20 (4) of the Act or under Article 23 (1) of the Act, it shall notify the Council and such creditor financial institution of the result of the mediation within ten days after the date of receipt of such appointment: Provided, That such period may be extended only once for not more than ten days when the verification of facts is necessary, or when there is any other unavoidable reason.
(2) If necessary for the efficient reorganization of an enterprise showing signs of insolvency and the mediation of different opinions among creditor financial institutions, the Mediation Committee may request executives and other staff members of creditor financial institutions and enterprises or relevant persons to attend at the Committee, and hear their opinions.
(3) Except those as provided for in this Decree, detailed matters necessary for the efficient administration of the Mediation Committee shall be determined by the Mediation Committee.
Article 8(Special Cases of Restriction, etc. on Investment and Asset Management) #
"Provisions of the Acts and their subordinate statutes governing the restrictions, etc. on investment and asset management as prescribed by Presidential Decree" in Article 25 (1) 6 of the Act means as follow:
1. Articles 35-6 and 35-7 of the Enforcement Decree of the Korea Development Bank Act;
2. Articles 17-7 and 17-8 of the Enforcement Decree of the Export-Import Bank of Korea Act;
3. Articles 30-3 and 30-4 of the Enforcement Decree of the Industrial Bank of Korea Act;
4. The Table attached to the Enforcement Decree of the Korea Finance Corporation Act (excluding the column for the limit of credit extension to the same borrower, etc.).