Nolboo, which filed for rehabilitation, to have a third party manage its assets instead of existing management... "Neutral management needed"

[Financial News] Nolboo, a restaurant franchise company that filed for corporate rehabilitation, will have its business operations and assets managed by a third party rather than its existing management. The move reflects the view that neutral oversight is needed while the court takes time to decide whether to open rehabilitation proceedings.
The 15th Rehabilitation Division of the Seoul Bankruptcy Court, presided over by Judge Kim Yun-seon, issued a preservation management order for Nolboo on the 31st.
A preservation management order is a system in which the court appoints a preservation manager to oversee a company's operations and assets before rehabilitation proceedings begin, in order to prevent assets from being improperly disposed of or reduced.
According to the court, the panel determined that it would take some time to decide whether to open Nolboo's rehabilitation proceedings. It therefore found it appropriate for a neutral third party, rather than the existing management, to oversee the company's assets in the meantime.
As a result, authority over Nolboo's operations and the management and disposal of its assets will be transferred to the preservation manager. Any repayment of monetary debts incurred before the preservation management order, asset disposal, or spending of more than 10 million won must be carried out with court approval.
Nolboo began in 1987 as a bossam restaurant in Sillim-dong, Gwanak-gu, Seoul, and once operated more than 1,000 stores nationwide as a first-generation Korean franchise. It filed for rehabilitation proceedings with the Seoul Bankruptcy Court on July 31.
Its business performance has also deteriorated sharply. According to its audit report, Nolboo posted an operating loss of 8.69486 billion won last year, about 14.8 times larger than a year earlier.
The court issued a comprehensive prohibition order on the 4th and held a hearing for the company representative on the 11th. It plans to decide whether to open rehabilitation proceedings after hearing from the creditors' council and others.
[email protected] Choi Eun-sol Reporter