|
|
|
|
|
Newsletter | February 2014, Issue 1
|
|
|
|
|
|
|
CORPORATE |
|
|
|
Extension of Sunset Clause under the Corporate Restructuring Promotion Act |
|
|
|
The effective period of the Corporate Restructuring Promotion Act (“Restructuring Act”) has been extended by two years to December 31, 2015 from December 31, 2013. |
|
|
|
The workout program under the Restructuring Act has been credited with contributing to increased efficiency in the restructuring of insolvent enterprises by allowing such enterprises to promptly complete restructuring processes, thereby normalizing their operation at an earlier stage and minimizing damages which may be suffered by interested parties. It is expected that given the continued demand for corporate restructuring, the extension of the sunset clause will enable the relevant parties to engage in rapid and efficient corporate restructuring when such restructuring is required. |
|
|
|
Meanwhile, together with the extension of the sunset clause, the method to challenge a decision by the Creditor Financial Institutions Committee (“Committee”) was established. With the introduction of the system for annulment of a Committee decision, in case of any violation of law with respect to the procedure for convening a Committee meeting or manner of adopting resolutions, a creditor financial institution or enterprise showing signs of insolvency may petition for annulment of such resolutions of the Committee within 14 days. |
|
|
|
Back to Main Page |
|
|
|
|
|
|
If you have any questions regarding this article, please contact below: |
|
|
|
|
|
|
|
For more information, please visit our website: |
|
|
|
|
|
|
|