'No Conditional Pledge for Debt Rescission' The Korean Sports Council eventually designated a governing body of the Tennis Association...Tennis Association Press Conference Today
Jul 10, 2024
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The Korea Sports Council announced on the 10th that it has designated the Korea Tennis Association as a managing organization facing financial and operational difficulties at the 31st meeting of presidents and vice-chairmen delegated by the board of directors of the Korea Sports Council.
After the 26th to 28th presidents and executives of the Tennis Association borrowed large amounts of funds (3 billion won) from Mediawill (hereinafter referred to as the "creditors") for the remodeling project of the tennis court at the Korea Military Academy, they took on 19% (KRW 570 million per year) of interest on the principal of the debt according to the court's decision and decided to designate the Tennis Association as a management organization based on the judgment that the amount is currently about 7.4 billion won, making it impossible to carry out the normal project.
The Korea Sports Association said, "From 2016 to the present, the association has not shown any attempts or efforts to convert debt by lowering the interest rate by applying for debt adjustment to the court or lending to the financial sector for debt settlement, which shows that the president of the association and other decision-making bodies such as the board of directors and the general meeting have serious errors in the operation and decision-making of the association."The association has been subject to the association's bank account or seizure and collection by court order for failing to pay off debts or fulfill agreements with creditors, but the part that opened and used about 450 bank accounts to avoid this may constitute an act of 'forced execution exemption.'"
At the 31st board of directors of the Korea Sports Council on May 31, the Tennis Association submitted an official letter of debt relief received from creditors, and the board of directors of the Korea Sports Council suspended the designation of a management organization until June 30, requesting the submission of a legal guarantee of debt exemption. On the 24th of last month, the creditor Mediawill submitted a pledge that the debt would be canceled under the condition that the association would not be designated as a management organization, but the KOC decided that the settlement of the debt relationship between the association and the creditor should precede it and cannot be regarded as a valid debt exemption required by the board of directors of the KOC, and requested the association to submit a revised pledge by the 7th, judging that the order was changed between the designation of the management organization and the debt exemption. The Korean Sports Association stated that the tennis association could not submit a commitment within the deadline, and the association failed to resolve the reason for designation of the management organizationThe chairmen and vice-chairmen delegated by the board of directors of the Korean Sports Council and the board of directors decided to designate the association's management organization to directly supervise the association for financial stability and transparent operation after in-depth discussions" he said.
He added that even if the association is designated as a management organization, administrative and financial support will remain the same as it is now, and a management committee will be formed in the future to actively support the association to normalize as soon as possible.
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