Restaurant chain Nolboo files for court rehab after surge in operating loss

The restaurant chain operator Nolboo has filed for corporate rehabilitation after its operating loss surged nearly 15-fold last year, legal sources said on Thursday.

The Seoul Bankruptcy Court issued a comprehensive prohibition order for Nolboo on Tuesday, according to the sources. The order freezes all claims against the company — halting forced executions, provisional seizures, preliminary injunctions and auction procedures — until the court decides whether to commence rehabilitation proceedings.

The court has scheduled a hearing with the debtor’s representative next Tuesday, likely to inquire about the scale of the company’s debts and its debt restructuring plans.

According to Nolboo’s audit report, its operating loss jumped 14.8 times to 8.69 billion won ($6.1 million) last year from 584.8 million won the previous year.

Yonhap