Corporate restructuring and debt restructuring | Business Field | Setagaya Yoga Law Office - Lawyers specializing in corporate clients

Summary of Procedures
Bankruptcy proceedings are procedures for the legal liquidation of a company when the company is cash-strapped and unable to pay its bills. Under the supervision of the court, all of the company's assets are revalued and liquidated, and the company's creditors receive a fair share of the proceeds. In corporate bankruptcy, the corporation ceases to exist and its liabilities are liquidated upon completion of bankruptcy proceedings. A prompt response is directly related to minimizing the risk of personal liability of management and the impact on business partners, employees, and others.

These are the people you should consider
• Funding is at a complete standstill
• Considering total debt restructuring and liquidation of the corporation
• You are being sued or foreclosed by a creditor

Procedures
1. Petition for commencement of bankruptcy proceedings
　The attorney will file a bankruptcy petition with the court on your behalf. An inventory of assets, a list of creditors, a business report, and other documents are also attached.
2. Court order of commencement of bankruptcy proceedings
　The court certifies insolvency, makes a decision to initiate bankruptcy proceedings, and appoints a trustee in bankruptcy.
3. Investigation, management, and realization of assets by trustee
　The trustee in bankruptcy investigates the company's assets and conducts sale (conversion) activities. They will also check for unauthorized transactions.
4. Holding of creditors meetings
　Under the auspices of the court, the progress of the proceedings and the status of the property are reported to the creditors.
5. Distribution to creditors after the property is revalued
　The funds obtained will be distributed in accordance with the legal order.
6. Termination of bankruptcy proceedings
　Once the distribution is completed, the bankruptcy proceedings are closed and the corporation ceases to exist.

Related laws and regulations
Bankruptcy Law Articles 30, 75, 217, etc.

Summary of Procedures
Special liquidation is a flexible liquidation procedure under the supervision of the court when a stock company is likely to become insolvent after dissolution or when the ordinary liquidation procedure is insufficient to protect creditors. Debt restructuring and company reorganization can proceed with less loss of social credibility than bankruptcy.

These are the people you should consider
• A large amount of debt remains in the company after dissolution
• To avoid loss of social credibility due to bankruptcy
• I want to liquidate or liquidate my company smoothly

Procedures
1. resolution of dissolution and appointment of liquidator at the general meeting of shareholders
　The company is dissolved and a liquidator is appointed.
2. petition for commencement of special liquidation
　The liquidator files a petition for commencement of special liquidation with the court.
3. Court order of commencement and supervision order
　The court may issue a supervision order and appoint a supervisor.
4. claim filings and claim investigations
　Requests creditors to file proofs of claims and investigates the existence of claims.
5. holding creditors' meetings (As necessary)
　Creditors' consent may be obtained for the liquidation policy.
6. property realizations and creditor distributions
　Dividends will be paid after the asset is sold.
7. termination of special liquidation and dissolution of the corporation
　Once all debt settlements are completed, the corporation ceases to exist.

related laws and regulations
Companies Act, Article 511, Article 515, etc.

Summary of Procedures
Civil rehabilitation proceedings are court-initiated procedures that do not liquidate the company, but instead seek to liquidate its debts while continuing its business. A rehabilitation plan is prepared that includes debt reduction and payment deferment, and creditors' consent is obtained for restructuring.

These are the people you should consider
• To avoid bankruptcy and keep the business alive
• Want to restructure while reducing debt
• I would like to maintain my social credibility and aim for a second chance

Procedures
1. Petition for commencement of civil rehabilitation proceedings
　Submit the petition and required documents to the court.
2. Court order of commencement and temporary restraining order
　The court decides to initiate rehabilitation proceedings and preserve property.
3. Appointment of supervisors and management orders
　The court appoints a supervisor to oversee operations.
4. Credit reporting and credit investigation
　We receive notification from the creditor and scrutinize the details of the claim.
5. Submission of proposed rehabilitation plan and creditors' meeting
　Submit a rehabilitation plan and obtain the consent of a majority of creditors.
6. Order of confirmation of the rehabilitation plan by the court
　The court decides to approve the plan.
7. Termination of rehabilitation proceedings and continuation of business
　The procedure will be terminated upon fulfillment of the plan.

Related laws and regulations
Civil Rehabilitation Law Article 21, Article 38, Article 171, etc.

Summary of Procedures
A private arrangement is a voluntary procedure in which debtors and creditors negotiate directly with each other to settle debts without using the courts. It is suitable for companies that want to restructure their business quickly and flexibly.

These are the people you should consider
• We want to rebuild while maintaining social credibility
• I want to resolve the issue through quick negotiations
• I want to consolidate my debt under flexible terms

Procedures
1. Formulate a restructuring plan
　In cooperation with attorneys and others, we will prepare a rescheduling plan and a reduction/exemption plan.
2. Start of creditor negotiations
　Individual or collective bargaining.
3. Obtaining consent
　The agreement is drafted with the consent of the creditors.
4. Plan execution
　Based on the agreement, the restructuring plan is implemented.

Summary of Procedures
The Turnaround Practice Guidelines are voluntary rules to ensure transparency and fairness in private liquidations. We aim for a smooth restructuring by building consensus with the involvement of outside experts.

These are the people you should consider
• Companies that need to coordinate with multiple financial institutions
• Companies that value transparent negotiations
• Companies wishing to retain social credibility

Procedures
1. Reorganization plan formulation
2. Explanation to and consensus building with related creditors
3. Supervision by external experts
4. Implementation of the rehabilitation plan

Summary of Procedures
Corporate reorganization proceedings are legal procedures for business reorganization under court supervision when a large company fails. Maximize corporate value while involving adjustment of creditor and shareholder rights.

These are the people you should consider
• For large companies seeking to restructure their business
• When the number of creditors is large and needs to be adjusted
• If you want to rebuild while protecting your assets and employees

Procedures
1. Petition for commencement of reorganization proceedings
2. Court order of commencement
3. Appointment of trustee for reorganization
4. Preparation of reorganization plan and creditors' meeting
5. Court approval of the plan
6. Performance of reorganization proceedings