Choyang court receivership repealed

As the Seoul District Court decided to abrogate the court receivership application from Cho Yang Line, the company seems likely to be declared bankrupt shortly.

The report Samil Accounting Corp. submitted to the court on August 16 was decisive in repealing the court receivership of Cho Yang. Samil revealed that Cho Yang Line has a much higher liquidation value, a 130 billion won, than it does as a business with only 70 billion won in worth.

"Even though Cho Yang is allowed to appeal the sentence, there is little possibility of being accepted because of the deep gap between its liquidation value and its business value", said a source in the court.

Though Cho Yang's appeal was denied and an adjudication of bankruptcy was confirmed, Cho Yang will sustain its business in some parts and try to repay debts.

All the Cho Yang employees looked quite grave after the court receivership was lifted, saying that the court didn't much pay attention to Cho Yang's side. People in shipping industry also said, "Cho Yang, once classified as a viable firm, finally went into bankruptcy. Lack of investment as well as conservative management contributed significantly to this conclusion."