Out-of-Court Workouts (Turnaround ADR)

Mori Hamada has an established track record in representing companies of all sizes, from listed companies to small and medium-sized enterprises, in out-of-court workouts in Japan. We have represented various parties, including debtors, dispute resolution service providers, expert advisors, sponsors, and creditors in out-of-court workouts under Turnaround ADR proceedings, the Guidelines for Out-of-court Workouts, and the Small and Medium Enterprise Revitalization Council (formerly the Small and Medium Enterprise Turnaround Initiative Council) scheme.

We adeptly lead out-of-court workouts with our pioneering initiatives. Our team of lawyers successfully concluded a restructuring plan involving the first large-scale debt-equity swap to provide financial support for a listed company and advised on the first rehabilitation-type demerger of a listed company in Japan in an out-of-court workout for another listed company. Additionally, at the inception of the Turnaround ADR system, we successfully concluded a business revitalization plan for a large-scale debt restructuring (involving over 40 creditors) utilizing means such as debt-equity swaps and debt forgiveness. Furthermore, we represented a debtor in concluding the first out-of-court workout by a majority vote in Japan, transitioning from Turnaround ADR proceedings to simplified rehabilitation procedures.