Archive for January 25th, 2010

Business transfers in minjisasei proceedings

January 25, 2010  |  Corporate Recovery  |  No Comments

Deserted buildings in uninhabited Japanese island of Gunkanjima

Advantages of a business transfer in minjisasei proceedings

In the law relating to minjisaisei proceedings there are regulations that allow easy and rapid procedures for business transfers.  In contrast mergers, corporate splits, Japanese law share for share exchanges – kabushiki koukan, 株式交換 – have to be carried out under the reconstruction plan.   A business transfer can be accomplished after the application to commence minjisaisei proceedings without the approval of a shareholder’s meeting but with the approval of the court.

In addition to helping prevent business operations from degrading and allow the business itself to be rebuilt with greater ease the business transfer has a number of other advantages. Read More

Japanese corporate reconstruction – overview

January 25, 2010  |  Corporate Recovery  |  No Comments

Gunkanjima - an uninhabited Japanese island badly in need of reconstruction

Varieties of Japanese corporate reconstruction

As is the case in many jurisdictions in Japan means of corporate reconstruction can be divided into two broad categories:  Private corporate reconstructions – shitekisaisei – 私的再生 – and reconstructions further to specified legal process – houtekisaisei – 法的再生. Shitekisaisei are private agreements among creditors or between creditors and the debtor concerned.  They would typically include the following types of agreements:

  • Debt rescheduling involving the extention of debt repayment or ammendment of terms
  • Debt – debt swaps typically involving one part of the debt being reduced in priority to others, perhaps becomign unsecured
  • Debt-equity swaps
  • Discharge of indebtedness
  • Introduction of new funds through equity placement or similar

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