With the passage of several years since the outbreak of COVID-19 and additional external factors such as the soaring prices of various goods and services and the sharp depreciation of the Japanese yen, companies' financial conditions have deteriorated, while others are considering filing for restructuring proceedings, which is why the reduction of excessive debt has become a major issue as of late.

In order for them to successfully restructure their businesses, it is essential for companies to raise funds and secure cash flow for the duration of their restructuring proceedings. Just as the U.S. Bankruptcy Code provides special protection for rescue financing under Chapter 11, Japanese law also provides certain special protection for rescue financing to companies during their restructuring proceedings.

This issue of the newsletter focuses on the legal systems and practices for such continually evolving rescue financing.