Coronavirus (COVID-19) Crisis and Japanese Bankruptcy / Debt RestructuringMay 2020
Our Financial Restructuring Group advises on a broad range of issues, from large-scale cross-border financial restructuring and bankruptcy to the corporate rehabilitation needs of local SMEs. We offer comprehensive legal support on behalf of a wide variety of stakeholders in the process of voluntary liquidation or other bankruptcy procedures, including debtor companies, creditors, and sponsors. Our services encompass all aspects of such legal proceedings, including provision of strategic advice on case management policies, and assistance with negotiations, interest adjustments, arrangements among various stakeholders, filing and execution procedures, due diligence, and sponsor selection discussions.
With the spread of the COVID-19 outbreak to virtually every corner of the world, businesses around the world are now facing an increasingly uncertain future, as well as the urgent need to respond to mounting losses and a rapidly deteriorating business environment. Added to that, businesses are worried about their ability to overcome obstacles to business continuity that are expected to arise when the COVID-19 situation is contained.
It is extremely important, when dealing with issues of business continuity, to effectively utilize the right financial restructuring schemes. In this regard, we are able, through our extensive know-how, to provide practical advice and support on financial restructuring in light of the latest business trends and market conditions in Japan and overseas. In the following section, we have provided some practical information on financial restructuring in Japan, outlining the relevant legal issues commonly faced. Such information is primarily set forth in the in-house newsletters that we publish and update from time to time as a general service to our clients.
The COVID-19 pandemic has had a profoundly adverse impact on society and global businesses. As a result of deteriorating market conditions, many foreign companies have been forced to cease their business operations in Japan through the liquidation or dissolution of their Japanese subsidiaries or affiliates. Due to the unique liquidation procedures under Japanese law, however, some foreign companies have found it costly and time-consuming to liquidate their businesses in Japan.
To facilitate smoother and more efficient winding down of businesses by foreign companies in Japan, our newsletter outlines the dissolution and liquidation procedures in Japan that are applicable to foreign companies, as well as the ancillary practical issues that should be considered. To find out more, please click on the link below for our newsletter on these issues.