BUSINESS
NPL Special Loans
We acquire special loans requiring expertise — rehabilitation and workout claims — and recover them with tailored solutions.
Types of Claims
Rehabilitation Claims
- Governed by the Debtor Rehabilitation and Bankruptcy Act
- In rehabilitation, claims are divided into rehabilitation security rights and rehabilitation claims
- Individual rehabilitation claims, corporate rehabilitation claims
Workout Claims
- Governed by the Corporate Restructuring Promotion Act
- Financial claims from credit extended to companies that applied for 'workout'
- Operated by the council of creditor financial institutions for financial restructuring and management normalization
| Item | Individual Rehab. | Rehab. (Individual) | Rehab. (Corporate) | Simplified Rehab. (Individual) | Simplified Rehab. (Corporate) | Workout (Corporate) |
|---|---|---|---|---|---|---|
| Regulation | Debtor Rehab. & Bankruptcy Act | Debtor Rehab. & Bankruptcy Act | Debtor Rehab. & Bankruptcy Act | Debtor Rehab. & Bankruptcy Act | Debtor Rehab. & Bankruptcy Act | Corporate Restructuring Promotion Act |
| Operator | Court | Court | Court | Court | Court | Creditor FI council |
| Effective from | 2004.09.23 | 1962.12.29 (Company Reorg. Act) | 1962.12.29 (Company Reorg. Act) | 2014.12.30 | 2014.12.30 | Since 2001.06.29 (temporary, ongoing) |
| Eligible claims | No limit (incl. private debt) | No limit (incl. private debt) | No limit (incl. private debt) | No limit (incl. private debt) | No limit (incl. private debt) | Financial claims from credit extension |
| Debt range | Secured (1B KRW) Unsecured (0.5B KRW) | No limit | No limit | Debt over 3B KRW | Debt over 3B KRW | Credit over 5B KRW |
| Eligible debtor | Over-indebted individual | No repayment plan, bankruptcy risk | No repayment plan, bankruptcy risk | Business-income earner | Business-income earner | Distress-signal company |
| Key points | Repayment within 3 yrs (5 yrs before 2018) | Repayment plan within 10 yrs | Repayment plan within 10 yrs | Repayment plan within 10 yrs | Repayment plan within 10 yrs | Debt rescheduling, new funding, self-rescue plan |
Process
POWer AMC
Korea Niche Loan Finance
Acquisition
- Financial institutions (1st/2nd tier)
- Lending corporations
Recovery
Rehab./Repayment
Individual rehabilitation repays over 3 years (5 years before 2018), general rehabilitation over 10 years; progress varies with the debtor's will and circumstances.
Auction Dividend
When rehabilitation-secured NPLs are not repaid, recovering claims by receiving dividends through auction.
M&A Normalization
Selectively providing additional liquidity to companies with high rehabilitation potential during rehabilitation/workout, then generating returns by normalizing via M&A
Quality Asset Take-over
Acquiring quality assets via general secured and rehabilitation-secured claims of companies with high rehabilitation potential during rehabilitation/workout