A Claim for Payment for Goods and Revocation of a Fraudulent Transfer

Law Firm Changchun represented a steel manufacturer in a claim for payment for goods and revocation of a fraudulent transfer brought against its counterparty and others, and obtained a successful judgment in its favor.

In this case a debtor owing its counterparty approximately KRW 700 million for goods deliberately defaulted and, just before doing so, assigned approximately KRW 120 million in receivables to acquaintances and had them collect on those receivables. Acting for the creditor company, we brought an action against the beneficiaries who received the assignment for revocation of a fraudulent transfer, and obtained judgment in our client's favor at both first and second instance.

An action for revocation of a fraudulent transfer, or a creditor's revocation action, is a suit to revoke and restore a fraudulent transfer in which a debtor in a state of insolvency, knowing that it will impede repayment of ordinary claims, reduces the assets available for compulsory execution by concealing, destroying or gifting its own property.

In this case Law Firm Changchun secured the effectiveness of enforcement of the judgment debt by seeking preservative measures against the defendants, including provisional attachment of real estate, at the same time as bringing the revocation action.

Law Firm Changchun responds actively and effectively for clients in numerous actions for revocation of fraudulent transfers, and on the strength of that expertise delivers the best solutions to protect our clients' rights.