Shinil, known for his ‘Happy Tree’ brand, has applied for a court receivership.
Concerns about the bankruptcy of medium-sized construction companies are growing this year, following HN Inc (HNINC), a company in Pan-Hyundai, and Daechang, which is in the top 100 in terms of construction capacity evaluation.
According to the legal community on the 1st, Shinil applied for corporate rehabilitation to the Seoul Rehabilitation Court on the 31st of last month.
The court intends to decide whether to accept the application after reviewing the application for a restraining order and the application for a comprehensive injunction submitted by the company. This process usually takes about a week.
Shinil is a medium-sized construction company established in 1985.
Currently, Jeju Oedo Shinil Happy Tree, Yeouido Shinil Happy Tree &, and Bangbae Shinil Happy Tree are under construction.
It is understood that Shinil has applied for corporate rehabilitation because the burden of construction costs has increased due to unsold units.
One of Shinil’s business sites, ‘Ulsan Onyang Bali Shinil Happy Tree’ in Onyang-eup, Ulju-gun, Ulsan, only six people applied for 93 homes in the general sale last April.
An official from the rehabilitation court said, “This year, there are more rehabilitation procedures for small and medium construction companies than in previous years.”
In the industry, concerns are growing that a series of bankruptcies could continue as mid-sized construction companies go into receivership one after another.
As of April this year, the number of unsold units after completion is 8716, the highest level in a year and 10 months since June 2021 (9008). /Union