The Seoul Rehabilitation Court's 18th Division, presided over by Chief Judge Yang Min-ho, said Tuesday it will defer its decision on whether to commence rehabilitation proceedings for JR Global REIT, an overseas real estate public REIT, until October 15.
The deferral is a standard procedure following JR Global REIT's request for the Autonomous Restructuring Support (ARS) program along with its rehabilitation filing. The ARS is a system in which the court suspends the commencement of rehabilitation proceedings and supports companies and creditors in voluntarily negotiating restructuring.
The court plans to receive related reports to manage and supervise the progress of negotiations and to support smooth discussions. The bench will be regularly briefed on the progress and status of negotiations under the ARS program, and will consider holding consultation hearings if necessary to ensure fair and transparent proceedings.
The deferral period can be extended by up to one month upon request or by the court's authority. In principle, the total deferral period cannot exceed three months, but additional extensions are possible as an exception when negotiations have made significant progress.
Earlier, JR Global REIT disclosed on the 26th of last month that it had failed to pay principal and interest on 40 billion won in bonds, and filed for rehabilitation proceedings with the court the following day. JR Global REIT, an overseas real estate public REIT listed in 2020, is the first REIT listed on the domestic stock market to file for rehabilitation proceedings.
The government views the insolvency as an exceptional case caused by a combination of factors, including declining asset values amid the deteriorating overseas commercial real estate market, concentration in specific large assets, and the burden of corporate bond repayments.
