Civil Rehabilitation/Corporate Reorganization
Civil rehabilitation and corporate reorganization differ from out-of-court restructuring in being procedures that draw on the power of courts to conduct business restructuring. Among current methods of business revitalization, out-of-court restructuring, which typically targets only financial creditors in order to minimize damage to business, is the primary method, but this method requires the consent of all financial creditors; thus, in cases where it is difficult to obtain the consent of all financial creditors or necessary to coordinate with transactional creditors, there is no alternative to adopting legal bankruptcy procedures such as civil rehabilitation or corporate reorganization.
Furthermore, in many cases where it is necessary to petition for civil rehabilitation or corporate reorganization, the debtor’s cash flow may be placed under significant pressure, and in such cases, after the initial consultation with the debtor, it is necessary to prepare the petition quickly in order to prevent cash flow failures. In addition, immediately after the petition is filed, it is necessary, in order to prevent confusion, to establish contact through multiple attorneys with each of the debtor’s offices and prevent the dissipation of assets while responding to creditor inquiries and explaining matters requiring attention to employees. Furthermore, in some cases, negotiations for DIP financing and sponsor searches have to be conducted swiftly before and after the petition.
Thus, civil rehabilitation and corporate reorganization are proceedings that target all creditors and aim for business revitalization through strict in-court proceedings, and because these proceedings require rapid responsiveness: (i) knowledge and experience related to legal bankruptcy proceedings; (ii) quick action; and (iii) cooperation among multiple attorneys, hold the key to success in business revitalization.
Our firm is well versed in the latest legal bankruptcy proceedings and has a wealth of experience both as a petitioner’s representative for civil rehabilitation and corporate restructuring, and as a supervisor for civil rehabilitation or administrator in corporate reorganization. We have created a system that can respond rapidly by assembling teams tailored to complex or urgent cases.
In addition, this wealth of experience allows us to provide appropriate advice to rehabilitation creditors or restructuring creditors in regard to the matters requiring their attention in civil rehabilitation or corporate restructuring cases.