AMT: Japan's New "Early Business Turnaround Act"

In a newsletter published at the end of June, Anderson Mori & Tomotsune (AMT) lawyers explained the newly enacted "Act on Procedures for Adjustment of Debts Owed by Business Operators to Financial Institutions, etc. for Facilitating Business Turnaround," referred to as the "Early Business Turnaround Act." The Act is set to be implemented within 18 months of its promulgation.
The Act introduces a groundbreaking "private restructuring by majority vote" system in Japan, creating a new, hybrid procedure that sits between fully consensual private workouts (like Turnaround ADR) and formal, public court-led proceedings (like Civil Rehabilitation or Corporate Reorganization).