Myongji Academy Enters Bankruptcy Process... Court Abolishes Rehabilitation Procedure

[Asia Economy Reporter Jang Sehee] The rehabilitation proceedings of Myongji Academy, which operates Myongji University, Myongji College, and Myongji Elementary, Middle, and High Schools, have been terminated, and it is expected to proceed toward bankruptcy.

According to the legal community on the 9th, the Seoul Rehabilitation Court, Rehabilitation Division 18 (Chief Judge An Byungwook) announced the day before that "the rehabilitation plan is not suitable for submission to the creditors' meeting for deliberation," and terminated the rehabilitation proceedings of Myongji Academy.

The decision to terminate the rehabilitation proceedings can be immediately appealed within 14 days from the date of announcement. However, since it has already been judged that the execution of the rehabilitation plan is difficult, the possibility of the appeal being accepted is low. Once the termination of the rehabilitation proceedings is confirmed, it is expected to enter bankruptcy proceedings.

The bankruptcy crisis of Myongji Academy is reported to be due to the 2004 'Silvertown Sales Fraud' case.

Meanwhile, Myongji Academy, embroiled in legal disputes, was ordered by the court in 2013 to compensate 33 victims of the Myongji Elpenheim sales for a total of 19.2 billion won. However, since compensation has not been made since then, creditors have filed for bankruptcy against Myongji Academy.

This content was produced with the assistance of AI translation services.