Court Orders Commencement of Rehabilitation Proceedings for Ilsan Complex Theme Park One Mount

The court has decided to commence rehabilitation proceedings for the One Mount complex theme park in Ilsan, Gyeonggi Province.

Seoul Rehabilitation Court in Seocho-gu, Seoul. [Image source=Yonhap News]

The Seoul Bankruptcy Court, Rehabilitation Division 1 (Presiding Judge Byeong-wook Ahn) announced on the 1st that it has decided to initiate rehabilitation proceedings for One Mount.

One Mount was selected as the preferred investor for the sports mall project on the site of the Korea International Exhibition Center (KINTEX) support facilities in Goyang City, signed a long-term lease contract with Goyang City, and has been operating the theme park along with various sports and commercial facilities since around 2013.

However, due to the COVID-19 outbreak in early 2020, the theme park's operations were suspended for an extended period, resulting in decreased sales, fixed expenses such as wages, and increased energy costs, which led to a shortage of operating funds. Even after the end of COVID-19, the accumulated losses could not be recovered, leading to a liquidity crisis, and the company applied for rehabilitation proceedings on the 16th of last month.

The court issued preservation orders and a comprehensive injunction the day after the rehabilitation application. Subsequently, on the 24th of the same month, a representative examination procedure was held, and on the 30th, after consulting the creditors' meeting and the management committee regarding whether to commence rehabilitation proceedings, the court decided to initiate the rehabilitation proceedings this afternoon.

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