COURT ENDS RESCUE PROCEEDINGS OF CHO YANG

COURT ENDS RESCUE PROCEEDINGS OF CHO YANG    The South Korean court responsible for a rescue reorganization plan for Cho Yang Shipping, the cash-strapped shipping line, has discontinued reorganization proceedings.
   A translation of a notice by the Seoul district court bankruptcy department on the Korean web site of Cho Yang said that, in addition to the discontinuation of the reorganization proceedings, the first creditors’ meeting scheduled on Aug. 31 in Seoul has been canceled.
   “It has been determined that the liquidation value of the company exceeds the potential future worth under reorganization,” the court notice said.
   Cho Yang filed for bankruptcy in May. In June, it initiated proceedings under the Corporate Reorganization Act aimed to restructure the debt and agree on a reorganization plan, rather than to liquidate the company.
   The court notice does not mention the next step for the settlement of the debts of Cho Yang.