COURT APPOINTS RECEIVER AND AUDITOR FOR CHO YANG
Korea’s First Court of Company Reorganization has appointed Soon Bae as receiver of Cho Yang, the cash-strapped Korean shipping company.
Bae, the former chairman of Korean information technology company IMS System Co., Ltd, will now act as the company’s representative.
The court has also named Sam-Il Auditing Firm, an affiliate of the PricewaterhouseCoopers accountancy group, as auditors of the company.
Cho Yang filed a petition for reorganization aimed at overcoming cash flow problems and rescheduling its debts on May 29.
The appointment of the receiver and auditor is the court’s second order since the beginning of the proceedings. It follows a “preservation order” that was made on June 5 to limit the disposal of the company’s assets.
In the court’s second order, the court also appointed a receiver for Nambuk Fisheries, a company affiliated to Cho Yang.
“The court will receive claims until July 13, 2001 and after scrutinizing (an) investigation report (due) to be submitted by the auditing companies (by) August 15, 2001, the court plans to give its final approval on the company’s petition for reorganization proceedings on the condition that the court becomes assured that the company’s value by survival will exceed the expected value by its liquidation,” Cho Yang said in a statement.