In-Court Insolvency Proceedings

Mori Hamada has an established track record of successfully handling numerous in-court restructuring and insolvency proceedings in Japan for clients, ranging from listed companies to small and medium-sized enterprises. We represent debtors, trustees, supervisors, sponsors and creditors in a wide array of in-court restructuring proceedings, such as civil rehabilitation and corporate reorganization proceedings, as well as in-court liquidation proceedings such as bankruptcy and special liquidation.

We adeptly lead in-court insolvency proceedings with our pioneering initiatives and ability to resolve unprecedented issues. In a civil rehabilitation case for a new airline company, we successfully utilized a special scheme (a so-called “shiteki seirigata no houteki seiri” scheme) for in-court insolvency that incorporates measures used in out-of-court workouts that do not target general commercial claims. In a civil rehabilitation case immediately following the enactment of the Civil Rehabilitation Act, we were the first in Japan to implement the new system of “business transfer outside a rehabilitation plan,” ushering in the current general scheme for civil rehabilitation proceedings involving business transfer outside a rehabilitation plan or liquidation. In a corporate reorganization case where the treatment of securitization schemes in corporate reorganization proceedings was a key issue, we persistently negotiated with the trustee, who sought to treat the assets as security interests in the reorganization.

Ultimately, we succeeded in convincing the court and trustee to agree not to treat the assets as security interests, thereby preventing a major disruption in the nascent securitization market.