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

A man walks into the headquarters of restaurant chain operator Nolboo in Seoul, Thursday. Yonhap

Restaurant chain operator Nolboo has filed for corporate rehabilitation after its operating loss surged nearly 15-fold last year, legal sources said 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 until the court decides whether to commence rehabilitation proceedings, halting forced executions, provisional seizures, preliminary injunctions and auction procedures.

The court has scheduled a hearing with the debtor's representative next Tuesday to likely 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 ($6.09 million) last year from 584.8 million won the previous year.