The Seller is the trustee with respect to the bankruptcy of Daewoo Songdo Development Corporation, a company with a main business purpose of property development. The Purchaser is Booyoung Housing Co., Ltd., a company with a main business purpose of construction and property development. The sale of the property located at Incheon Yonsugu was part of the Seller’s bankruptcy proceedings for repaying debts to bankruptcy creditors.
There were various complex legal issues that needed to be resolved for this transaction, including extending the term of the license and permits for the development of the property which expired, settling conflicts of interests of the numerous bankruptcy creditors, and responding to calls for auctions for those that objected to the sale, resolving attachments prohibiting sale of the property, or sale of assets comprising the property that may be distributed among the creditors. In addition, at the time the agreement was entered into, the initial Purchaser defaulted on payment of the purchase price which resulted in another complicated issue regarding the transfer of the Purchaser’s rights which continued for approximately 1 year. Lee&Ko was able to provide effective assistance to successfully close this transaction and furthermore was able to contribute from a social standpoint by obtaining assets to distribute to the creditors.