A person passes by a Pizza Hut retailer in Seoul. (Newsis)
Pizza Hut Korea Ltd., the South Korean operator of the namesake American pizza franchise, on Monday obtained approval from a court docket to proceed with an autonomous restructuring assist plan, placing on maintain court-mandated rehabilitation proceedings after dropping a lawsuit introduced by retailer house owners.
The Seoul Chapter Court docket mentioned it accepted the ARS rehabilitation plan requested by Pizza Hut Korea earlier within the day.
An ARS program is a system the place an organization negotiates debt reimbursement plans autonomously with its collectors. The court docket has given one month for associated negotiations to happen.
If an settlement is reached, a voluntary settlement shall be finalized, permitting the corporate to keep away from court-mandated rehabilitation procedures.
Final week, Pizza Hut Korea filed for company rehabilitation as a consequence of monetary difficulties stemming from dropping a lawsuit introduced by retailer house owners. The corporate reportedly must return 21 billion gained ($15 million) in franchise charges to 94 retailer house owners.
