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| TITLE | [Violation of the Act on the Aggravated Punishment, etc. of Specific Economic Crimes (Breach of Trust)]Supreme Court Decision 2007Do5987 Delivered on February 28, 2008 [full Text] |
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| Summary | |
| [1] Whether acquiring a company through a leveraged buyout (""LBO""), which is the acquisition of a target company by using its assets as collateral to borrow a significant amount of money to finance such acquisition, constitutes a crime of an occupational breach of trust (affirmative in principle) [2] The case holding that, during an LBO, if the acquiring company used the asset of the target company as collateral without any other consideration in order to secure loans from a third party (principal debtor), then it can be deemed that a crime of a Breach of Trust has been established since the target company sustained financial losses equivalent to the value of the secured assets, even though the third party (principal debtor) provided reorganization claims as security equivalent to amounts of loan and its interests | |
