Court Orders Rehabilitation Proceedings for Shindong-A Construction Ranked 58th in Construction Industry

The court has decided to commence corporate rehabilitation proceedings (court receivership) for Shindonga Construction, which ranked 58th in the construction capability evaluation.

The Seoul Rehabilitation Court, Rehabilitation Division 3 (Chief Judge Lee Yeo-jin) announced on the 22nd that it has decided to initiate rehabilitation proceedings for Shindonga.

The court explained the reason for the decision, stating, "Liquidity has deteriorated due to worsening profitability caused by rising raw material prices, project setbacks due to a sluggish sales market, and an increase in construction receivables."

The deadline for submitting the rehabilitation plan is June 26 of this year. The court will review the plan and decide whether to approve the rehabilitation. If it is judged that rehabilitation is not feasible, the case will proceed to bankruptcy.

The existing CEO, Kim Yong-seon, will serve as the administrator. Shindonga Construction must prepare a list of creditors and submit it to the court by the 20th of next month. Creditors' claims will also be accepted until March 13 of this year. Additionally, Samjeong Accounting Corporation will serve as the investigation committee to evaluate the value of continuing the business versus liquidation.

Founded in 1977, Shindonga Construction is a mid-sized construction company known for its housing brand "Familie." It ranked 58th in last year's construction capability evaluation. Shindonga Construction applied for a workout in 2010 and completed the workout (corporate financial restructuring) in November 2019. After five years, it is now undergoing court receivership proceedings again.

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