This study examines the post-termination performance of firms that have completed court-managed receivership (legal administration) to investigate whether there exists an economically significant bias that allows unprofitable firms to continue operating. Additionally, factors affecting post-termination performance were analyzed. The findings are as follows. First, performance in years +1, +2, and +3 after the termination of court-managed receivership was found to be significantly lower than the industry average. Second, examining the trend of debt ratios after termination, firms that filed for court-managed receivership had an average debt ratio (total debt/total assets) of 0.83 three years prior to filing. The average debt ratios two years and one year before filing were 0.84 and 0.94, respectively. However, the average debt ratios at +1 and +2 years after termination were 1.09 and 1.06, respectively, indicating that debt ratios after termination not only failed to improve compared to pre-filing levels but actually increased. This suggests that the severe financial distress of terminated firms increases the likelihood of subsequent failure. Third, examining the proportion of firms that emerge from court-managed receivership only to fail again represents the most fundamental method of assessing receivership outcomes, and approximately 15% of such firms fail again. Synthesizing the analytical results, these firms exhibit inferior performance compared to other firms in the same industry, confirming that an economic bias exists that allows unprofitable firms to continue operating. Finally, factors affecting post-termination performance included pre-filing profitability and the debt forgiveness ratio (using debt ratio as a proxy), both showing a significant positive relationship, while the duration of the reorganization period and firm size were found to be insignificant.