- Restructuring & Insolvency
Liquidation Proceedings / Special Liquidation Proceedings
Advising on Most Suitable Option
When dissolving a company or subsidiary by liquidation proceedings or special liquidation proceedings, it is necessary to be well-prepared in advance in order to achieve the best outcome. This includes estimating the actual influence of the liquidation or special liquidation proceedings and responses from its shareholders, employees, creditors and customers; taking into consideration legal, accounting and tax consequences; choosing the most appropriate type of proceedings and determining a concrete schedule and policies to manage incidental problems. From a parent company's (or a controlling shareholders') perspective, it becomes particularly important to take deliberate measures in selling the business or assets of the liquidating company to a new company or a related company; because, if these preparations are inadequate, objections by various stakeholders may cause the debtor company’s liquidation proceedings to convert into bankruptcy proceedings, and the court-appointed bankruptcy trustee may exercise his/her right of avoidance for transactions to the detriment of the parent company or the controlling shareholder.
We can assist companies and controlling shareholders by applying our expertise, in cooperation with accounting and tax specialists as required, to ensure our clients achieve the most suitable method and procedure by which the particular company should be liquidated, taking all factors into consideration; such as the debtor company’s business, the conditions of related companies, the need to sell the business and assets, and circumstances surrounding and/or under which creditors and customers of the debtor company are operating.
Awards & Rankings
Nishimura & Asahi is a premier law firm in Japan with proven strength in tackling civil rehabilitation, out-of-court workouts and turnarounds. Possesses extensive experience in cross-border filings, especially in relation to US regulations. Notably acts for both creditors and debtors, with an emphasis on recapitalisation and restructuring procedures.Chambers, Restructuring/Insolvency (2022)
Known for traditional insolvency work, particularly representing debtors, Nishimura & Asahi is also strong in restructuring and insolvency transactions involving out-of-court workouts and turnarounds. As well as acting in large-scale matters, the firm handles petitions for bankruptcy and insolvency proceedings on behalf of small and medium-sized companies. The practice is active in Japan and throughout Asia, with increasing experience in cross-border workouts and global restructuring.The Legal 500, Restructuring and Insolvency (2022)