Corporate Restructuring Through Spin-Off Reorganization Plan: A Korean Case Study

Since the corporate spin-off was adopted in Korean business corporation law in 1998, many Korean exchange-listed and KOSDAQ- registered firms have applied this system. Especially, the Korean bankruptcy court realized that the spin-off is a very useful tool for reorganizing firms and rescuing them from financial distress. The actual benefits of corporate spin-offs include the (i) enhancement of management efficiency, (ii) improvement of the sound structure of corporate governance, and (iii) alleviation of information asymmetry by dividing a well-diversified business in the market, among others. This article analyzes two reorganizing firms’ division cases, which successfully completed a turnaround from insolvency by applying spin-offs. Corporate spin-off, as a legal process, is controversial. The most critical disputes involve creditor and shareholder interest protection and the subject of division. This article examines many practical issues with a focus on spin-off procedures. This article covers the following topics: (i) the significance, need, and legal nature of a spin-off; (ii) the various ways of creating a company spin-off such as simple division, merger by split, merger through a newly incorporated division, merger by split, and in rem division; (iii) the divided firm’s scope, asset, and debts; (iv) spin-off procedure for reorganizing a company; and (v) the effects of a spin-off and status of reorganizing a company. Since 1999, many Korean firms have begun to implement spin-offs for their own purposes, but there has been limited academic research on them. Therefore, Germany and France have been used as other jurisdictional sources for explanation. This article conducts an in-depth analysis of the spin-off process at two reorganizing Korean companies and it will provide understanding as to why corporate spin-offs have been used since the Korean economy’s collapse in 1998

Bankruptcy Law Dilemma: Appraisal of Corporate Value and Its Distribution in Corporate Reorganization Proceedings

This article will analyze issues arising in reorganization proceedings with which the bankruptcy court has not yet grappled. If the questions arising in the remainder of this article can be clearly answered, then to a certain extent numerous arguments about Chapter 11 can be settled. This article will also analyze both Korean and U.S. bankruptcy law and will maintain a comparative approach with a critical perspective. Though Korean bankruptcy law indirectly adopted11 that of the United States in 1962, the actual application and interpretation of Korean bankruptcy law is quite different and I will accurately compare and contrast the two systems

Bankruptcy Law Dilemma: Appraisal of Corporate Value and Its Distribution in Corporate Reorganization Proceedings

This article will analyze issues arising in reorganization proceedings with which the bankruptcy court has not yet grappled. If the questions arising in the remainder of this article can be clearly answered, then to a certain extent numerous arguments about Chapter 11 can be settled. This article will also analyze both Korean and U.S. bankruptcy law and will maintain a comparative approach with a critical perspective. Though Korean bankruptcy law indirectly adopted11 that of the United States in 1962, the actual application and interpretation of Korean bankruptcy law is quite different and I will accurately compare and contrast the two systems

Compression of Hamiltonian matrix: Application to spin-1/2 Heisenberg square lattice

We introduce a simple algorithm providing a compressed representation (is an element of R-NorbitsxNorbits x N-Norbits) of an irreducible Hamiltonian matrix (number of magnons M constrained, dimension: N-spins!/M!(N-spins-M)! > N-orbits) of the spin-1/2 Heisenberg anti-ferromagnet on the L x L non-periodic lattice, not looking for a good basis. As L increases, the ratio of the matrix dimension to Norbits converges to 8 (order of the symmetry group of square) for the exact ground state computation. The sparsity of the Hamiltonian is retained in the compressed representation. Thus, the computational time and memory consumptions are reduced in proportion to the ratio. (C) 2016 Author(s). All article content, except where otherwise noted, is licensed under a Creative Commons Attribution (CC BY) license (http://creativecommons.org/licenses/by/4.0/).ope

On the nonuniqueness of sediment yield at the catchment scale: The effects of soil antecedent conditions and surface shield

The understanding of reasons leading to nonuniqueness of soil erosion susceptibility is still inadequate, yet indispensable for establishing general relations between runoff volume and sediment yield. To obtain relevant insights, we performed a series of numerical simulations with a detailed hydrodynamic model using synthetic storms of varying intensity, duration, and lag time between events as representations of different hydrologic response conditions in a zero‐order catchment. The design targeted to generate surface flow and “perturb” soil substrate by a first rainfall event, creating a set of initial conditions in terms of flow and deposited sediment prior to the onset of a subsequent rainfall event. Due to the differential effect of (re)detachment and (re)entrainment processes on soil particles of varying sizes, the deposited sediment mass formed shielding layer. One of the essential results is that unless the initial condition of flow and sediment is identical, the same volume of runoff can generate different total sediment yields and their variation can reach up to ∼200%. The effect is attributed to two major conflicting effects exerted by the deposited “initialization” (soil antecedent condition) sediment mass: erosion enhancement, because of supply of highly erodible sediment, and erosion impediment, because of constrain on the availability of lighter particles by heavier sediment. Consistently with this inference, long‐term simulations with continuous rainfall show that a peculiar feature of sediment yield series is the existence of maximum before the steady state is reached. The two characteristic time scales, the time to peak and the time to steady state, separate three characteristic periods that correspond to flow‐limited, source‐limited, and steady‐state regimes. These time scales are log linearly and negatively related to the spatially averaged Shields parameter: the smaller the rainfall input and the heavier a given particle is, the larger the two scales are. The results provide insights on how the existence of shield operates on erosion processes, possibly implying that accurate short‐term predictions of geomorphic events from headwater areas may never become a tractable problem: the latter would require a detailed spatial characterization of particle size distribution prior to precipitation events. Key Points The same volume of runoff can generate different total sediment yields (∼200%) Erosion enhancement or impediment effects exerted by the shielding layer Two time scales and three characteristic regimesPeer Reviewedhttp://deepblue.lib.umich.edu/bitstream/2027.42/106740/1/wrcr20739-sup-0002-suppinfo2.pdfhttp://deepblue.lib.umich.edu/bitstream/2027.42/106740/2/wrcr20739.pd