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38 Int'l Law. 855 (2004)
Japan's New Corporate Reorganization Law

handle is hein.journals/intlyr38 and id is 869 raw text is: Japan's New Corporate Reorganization Law HIDEo HORIKOSHI* I. Introduction In recent years, legislators have introduced several changes to Japanese insolvency laws in order to address the financial difficulty facing many individuals and to facilitate the liquidation or restructuring of insolvent companies. Overall, the amendments to the Cor- porate Reorganization Law (kaisya kosei bo), which were enacted in December 2002 and came into effect in April 2003, are expected to facilitate the restructuring of large insolvent corporations. This article examines corporate restructurings under Japanese insolvency proceedings by explaining and analyzing the amendments to the Corporate Reorganization Law. *Hideo Horikoshi is an attorney admitted in Japan and the state of New York, and is currently working with Asahi Koma Law Offices in Tokyo, Japan. LL.B., Hitotsubashi University, Faculty of Law; Completion, The Legal Training and Research Institute of the Supreme Court ofJapan; L.L.M., Southern Methodist University Dedman School of Law. The first version of this article titled Corporate Reorganization Law Revisions in Japan appeared in the Japanese book tided Kaisba Kosei No Subete published by Chuo Keizai, Co., in August 2003, and has been revised and updated by the author in this article with permission from Chuo Keizai Co. 1. Since October 1996, the Ministry of Justice has discussed revising the entire insolvency regime, including the Corporate Reorganization Law. As a result, the Civil Rehabilitation Law (formerly the Composition Law (wagi ha)); the Rehabilitation Proceedings for Individual Debtors (kojin minji saisei tetsuduki), which was enacted as an amendment to the Civil Rehabilitation Law; and the Law on Recognition and Assistance of a Foreign Proceeding (gaikoku tosan syonin enjo bo), which is modeled on UNCITRAL's Model Law on Cross-Border Insolvency, have been enacted. As for the Law on Recognition and Assistance of a Foreign Proceeding, see Hideo Horikoshi, Guide to Japanese Cross-Border Insolvency Law, LAw & Bus. REv. Am. 725-739 (2003). The Bankruptcy Law was amended overall on May 25, 2004. This amendment to the Bankruptcy Law was issued on June 2, 2004 (Law No. 75 of 2004) and will become effective within one year from June 2, 2004. Pursuant to the Industrial Revitalization Corporation Law, enacted in April 2, 2003 and effective April 10, 2003, the Industrial Revitalization Corporation ofJapan (IRCJ) was created on April 16, 2003. The role of this public organization is to facilitate restructuring by purchasing bank's bad loans and coordinating creditors. The IRCJ decided to work on twenty-three companies until April 16, 2003. Debt purchase by the IRCJ will be terminated at the end of March 2005. See http://www.ircj.jp (last visited August 31, 2004). Since the enactment of the Civil Rehabilitation Law, the number of corporations utilizing reorganization proceedings and foreign business enterprises, such as U.S. funds, to invest their debts, assets or shares have increased.

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