Around September 2013, Tongyang, Tongyang Leisure, Tongyang International, Tongyang Cement, Tongyang Networks, and major affiliates of the Tongyang Group, filed motions for the commencement of rehabilitation proceedings in the Seoul Central District Court because of a liquidity crisis. Other affiliates were issued decisions approving rehabilitation plans around March 2014, but Tongyang Leisure had difficulties in even coming up with a proposed rehabilitation plan because of various complicated legal problems and conflicting interests among various parties. On July 14, 2014, however, it was finally issued a decision approving its rehabilitation plan, thus overcoming a major threat to normalization of the management. In contrast to other affiliates, Tongyang Leisure’s situation was such that a normal rehabilitation proceeding was difficult to expect. Above all, Tongyang Leisure, a company whose principal business was golf course operation, had sold its core asset (golf course and related real properties) to Tongyang Life Insurance and subsequently leased and used them. Therefore, they had to pay a huge amount of rent each year. As such, its members-only golf course business was not enough to pay for its rent and operating expenses. Also, there were sharply conflicting interests not only between members of Pine Creek CC and those of Pine Valley CC, which are both operated by Tongyang Leisure, but between golf course members and creditors who purchased CPs issued by Tongyang Leisure through Tongyang Securities as well. Thus, there were significant difficulties in the deciding factors, such as repayment method, repayment ratio, golf course operation after debt-equity swap, etc., to be included in the proposed rehabilitation plan. Under such circumstance and based on past experiences and expertise on corporate rehabilitation and legal advising on golf courses, One Law Partners’ Tongyang Leisure TF team―led by attorneys Yong Rahk Shin, Kwang Soo Lee, and Young Ho Chae―recognized that the approval of the rehabilitation plan required conversion of existing membership golf courses into public golf courses. Moreover, they provided advices on registrations for sports facilities businesses under the Act on Installation and Utilization of Sports Facilities, procedure to secure consent of certain number of golf course members or more for such registration, etc.  In addition, One Law Partners’ Tongyang Leisure TF team secured significant rent reduction through active involvement in negotiations with Tongyang Life Insurance (owner of the land for the abovementioned golf courses, etc.). With this, the foundation for approval of the proposed rehabilitation plan for Tongyang Leisure was thus laid. Furthermore, One Law Partners’ Tongyang Leisure TF team, while coordinating interests among CP creditors and golf course members through close cooperation with the receivers, prepared a realistic plan that is capable of mediating disagreements among golf course members with differing interests as well as persuading members who oppose the conversion into a public course. As such, a reasonable rehabilitation plan can be proposed. Ultimately, the proposed rehabilitation plan received most of the creditors’ consent and was also approved by the court. As shown above, One Law Partners not only provides its clients legal advices but, by proposing correct methods of solving the problems and aggressively representing the clients, endeavors to help its clients achieve their goals, as seen in its advices to Tongyang Leisure with regard to legal matters. Based on specialized knowledge, broad experiences, expertise, and aggressive representation, One Law Partners will continue to provide top-notch legal services in areas such as corporate rehabilitation and bankruptcy, including conversion of a members-only golf course into a public golf course. ​ ​ [Relevant news articles​] Yonhap News: Court approves proposed rehabilitation plan for Tongyang Leisure   ​ [Relevant involved​] Yong Rahk Shin: Tel) 02-3019-3942 / E-mail) yrshin@onelawpartners.com Kwang Soo Lee: Tel) 02-3019-2168 / E-mail) kslee@onelawpartners.com  Young Ho Chae: Tel) 02-3019-3941 / E-mail) yhchae@onelawpartners.com Chang Hyun Cheon: Tel) 02-3019-2164 / E-mail) chcheon@onelawpartners.com