Posts Tagged ‘insolvency’

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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