Seoul: Pizza Hut Korea Ltd., the South Korean operator of the American pizza franchise, recently received approval from a court to implement an autonomous restructuring support (ARS) plan. This decision temporarily halts court-mandated rehabilitation proceedings following a lawsuit loss to store owners. According to Yonhap News Agency, the Seoul Bankruptcy Court granted permission for the ARS rehabilitation plan requested by Pizza Hut Korea. An ARS program allows companies to negotiate debt repayment plans directly with creditors. The court has provided a one-month period for these negotiations to occur. Should an agreement be reached within this timeframe, a voluntary settlement will be finalized, enabling the company to sidestep court-mandated rehabilitation procedures. This development follows Pizza Hut Korea's filing for corporate rehabilitation last week due to financial challenges. The company faces the obligation to repay 21 billion won (approximately US$15 million) in franchise fees to 94 store owne rs, stemming from the lawsuit loss.
Court Approves Pizza Hut Korea’s Autonomous Restructuring Support Plan Amid Financial Struggles.
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