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| SECTION U - LIQUIDITY PROBLEMS |
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If it was necessary to provide urgently needed cash (or liquidity) to enable the business of an insolvent corporate borrower to survive, how could a financier who was willing to provide this "new money" be protected and given priority over other existing creditors? |
| Under bankruptcy law of Korea, "new money" is normally given priority in repayment so that, with court approval for inducing new money, it may from time to time be repaid while the repayment of the other existing debts is freezed during the bankruptcy proceedings and it ranks senior to the other unsecured debts with respect to bankruptcy estate. |
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