Article 17(1)When there is a fact constituting grounds for commencement of a reorganization (meaning any of the facts stated in the following items) in relation to a stock company, the stock company may file a petition to commence reorganization against itself:

(2)When there is a fact that falls under item (i) of the preceding paragraph in relation to a stock company, the following persons may also file a petition to commence reorganization proceedings against the stock company:

Article 18Even when a liquidator of a stock company is required to file a petition to commence bankruptcy proceedings or a special liquidation against the stock company pursuant to the provisions of other Acts, this does not preclude the filing of a petition to commence reorganization.

Article 19In order for a stock company to file a petition to commence reorganization against itself during liquidation or special liquidation or after the commencement of bankruptcy proceedings, that filing must be approved by a resolution prescribed in Article 309, paragraph (2) of the Companies Act.

Article 20(1)When filing a petition to commence reorganization, a petitioner must make a prima facie showing of the fact constituting the grounds for commencement of reorganization prescribed in Article 17, paragraph (1).

(2)If a creditor or shareholder files a petition under the provisions of Article 17, paragraph (2), the creditor or shareholder must also make a prima facie showing of the amount of the claim or the number of their voting rights (excluding the voting rights of the shares of stock which may not be exercised for all particulars that may be resolved at a shareholders meeting, and including the voting rights of the shares of stock for which the shareholder is deemed to have voting rights pursuant to the provisions of Article 879, paragraph (3) of the Companies Act).

Article 21(1)When filing a petition to commence reorganization, a petitioner must prepay an amount designated by the court as expenses for reorganization.

(2)An immediate appeal may be filed against a ruling on prepayment of expenses.

Article 22(1)If a petition to commence reorganization is filed under the provisions of Article 17, the court, before making a ruling on the petition, must hear opinions of the labor union consisting of the majority of the employees of the company awaiting reorganization, if there is any such labor union, or the person representative of the majority of the employees of the company awaiting reorganization, if there is no labor union consisting of the majority of the employees of the company awaiting reorganization, except when it is obvious that the court should dismiss the petition or make a ruling to commence reorganization .

(2)If a creditor or shareholder has filed a petition to commence reorganization pursuant to the provisions of Article 17, paragraph (2), the court, when making a ruling on the petition, must interrogate the representative of the company awaiting reorganization (or its representative for Japan if the company has its head office in a foreign state).

Article 23A person that has filed a petition to commence reorganization may withdraw the petition only prior to a ruling to commence reorganization being made. In this case, after a ruling to stay under the provisions of paragraph (1) or paragraph (2) of the following Article, comprehensive prohibitory injunction prescribed in Article 25, paragraph (2), provisional remedy under the provisions of Article 28, paragraph (1), permission under the provisions of Article 29, paragraph (3), orders for provisional administration prescribed in Article 30, paragraph (2), supervision order prescribed in Article 35, paragraph (2), or provisional remedy under the provisions of Article 39-2, paragraph (1), permission of the court is required.

Article 41(1)If a petition to commence reorganization is filed under the provisions of Article 17, when it finds a fact constituting the grounds for the commencement of reorganization, the court makes a ruling to commence reorganization, except in any of the cases listed in the following items:

(2)The ruling made under the preceding paragraph will become effective as of the time when it is made.

Article 42(1)Upon making a ruling to commence reorganization, the court must appoint one or more trustees and specify a period during which a proof of a secured or unsecured reorganization claim should be filed and a period for conducting an investigation of secured or unsecured reorganization claims.

(2)In the case referred to in the preceding paragraph, if there are one thousand or more known secured or unsecured reorganization creditors and it finds it appropriate, the court may make a ruling not to give a notice to known secured or unsecured reorganization creditors under the provisions of paragraph (3), item (i) of the following Article, as applied mutatis mutandis pursuant to the main clause of paragraph (5) of the same Article, and the provisions of the main clause of Article 44, paragraph (3), and not to summon, on the date of a stakeholders meeting (excluding one aimed for adopting a resolution on a proposed reorganization plan), secured or unsecured reorganization creditors that have filed a proof of their secured or unsecured reorganization claims pursuant to the provisions of Article 138 through Article 140 or Article 142 (referred to as "secured or unsecured reorganization creditors who filed claims").

Article 43(1)When it has made a ruling to commence reorganization, the court must immediately give a public notice of the following; provided, however, that when there is no bond administrator or trustee company prescribed in item (v), a public notice of the particulars stated in the same item is not required:

(2)When a ruling referred to in paragraph (2) of the preceding Article is made, beyond the particulars stated in the items of the preceding paragraph, the court must give a public notice to the effect that it will not give a notice to known secured or unsecured reorganization creditors under the provisions of item (i) of the following paragraph, as applied mutatis mutandis pursuant to the main clause of paragraph (5), and the provisions of the main clause of paragraph (3) of the following Article, and also will not summon secured or unsecured reorganization creditors who filed claims on the date of a stakeholders meeting (excluding one with the aim of adopting a resolution on a proposed reorganization plan).

(3)The following persons must be given a notice of the particulars which a public notice must give, pursuant to the provisions of the preceding two paragraphs:

(4)Notwithstanding the provisions of the preceding paragraph, in the cases stated in the following items, the notice specified in the respective items does not be required to be given under the provisions of the same paragraph:

(5)The provisions of paragraph (1), item (ii), paragraph (3), item (i) through item (iii), and the preceding paragraph apply mutatis mutandis when there is a change to the particulars stated in paragraph (1), item (ii), and the provisions of paragraph (1), item (iii), paragraph (3), item (i) and item (ii), and the preceding paragraph apply mutatis mutandis when there is a change to the particulars stated in paragraph (1), item (iii) (limited to cases where there is a change to the period during which a proof of secured or unsecured reorganization claims should be filed); provided, however, that when the ruling referred to in paragraph (2) of the preceding Article is made, the notice is not required to be given to known secured or unsecured reorganization creditors.

Article 44(1)An immediate appeal may be filed against a judicial decision on a petition to commence reorganization.

(2)The provisions of Section 2 of the preceding Chapter apply mutatis mutandis when an immediate appeal referred to in the preceding paragraph is filed against a ruling to dismiss a petition to commence reorganization.

(3)The court that has made a ruling to commence reorganization, if an immediate appeal referred to in paragraph (1) is filed and a ruling to set aside the relevant order becomes final and binding, must immediately give a public notice of the main text of the order and give a notice of their main text to the persons stated in the items of paragraph (3) of the preceding Article (excluding item (iv)) (excluding the persons that are not given a notice under the provisions of paragraph (4) of the same Article); provided, however, that when a ruling referred to in Article 42, paragraph (2) is made, the notice is not required to be given to known secured or unsecured reorganization creditors.

Article 45(1)During the period after the commencement of a reorganization until their close, none of the following acts may be conducted with regard to the reorganizing company unless it is prescribed in a reorganization plan:

(2)During the period after the commencement of reorganization until their close, the articles of incorporation of the reorganizing company may not be amended unless it is prescribed in a reorganization plan or it is permitted by the court.

Article 46(1)During the period after the commencement of reorganization until their close, the acts stated in Article 467, paragraph (1), item (i) through item (ii)-2 of the Companies Act (referred to as the "transfer of the business and other related acts" in this Article) which relate to the reorganization company may not be conducted unless prescribed in a reorganization plan; provided, however, that this does not apply when the transfer of the business and other related acts regarding the business of the reorganizing company is conducted pursuant to the provisions of the following paragraph through paragraph (8).

(2)During the period after the commencement of a reorganization until a ruling to refer the proposed reorganization plan to a resolution is made, a trustee, with permission of the court, may conduct the transfer of the business and other related acts relating to the reorganizing company. In this case, the court may grant permission only when it finds the transfer of the business and other related acts to be necessary for the reorganization of the reorganizing company's business.

(3)When granting the permission referred to in the preceding paragraph, the court must hear opinions from the following persons:

(4)If a trustee intends to conduct the transfer of the business and other related acts relating to the reorganizing company pursuant to the provisions of paragraph (2), the trustee must give a public notice or give notice to shareholders of the following in advance:

(5)The notice to a shareholder under the provisions of the preceding paragraph may be dispatched to the shareholder's address entered or recorded in the shareholder registry or any other place or point of contact which the shareholder has notified the reorganizing company or the trustee of.

(6)The notice to a shareholder under the provisions of paragraph (4) is deemed to have reached the addressee at the time when the notice should have normally arrived.

(7)The court may not grant the permission referred to in paragraph (2) in any of the following cases:

(8)The provisions of paragraph (4) through the preceding paragraph do not apply when the counterparty to the contract for the transfer of the business and other related acts under the provisions of paragraph (2) is a special controlling company (meaning a special controlling company prescribed in Article 468, paragraph (1) of the Companies Act) of the reorganizing company or when the reorganizing company is, at the time of the permission referred to in paragraph (2), unable to pay its debts in full with its assets.

(9)Any act conducted without the permission referred to in paragraph (2) will be void; provided, however, that this may not be asserted against a third party in good faith.

(10)The provisions of Chapter VII, Part II of the Companies Act do not apply when the transfer of the business and other related acts relating to the reorganizing company is conducted with the permission referred to in paragraph (2).

Article 47(1)With regard to a secured or unsecured reorganization claim, after the commencement of reorganization, except as otherwise prescribed in this Act, it is not permissible to make or receive payment or conduct any other act which causes the claim to be extinguished (excluding a release) unless it is prescribed in a reorganization plan.

(2)If a small or medium-sized enterprise of which major trading partner is the reorganizing company is likely to experience significant hindrance to the continuation of their business unless they receive payment of their secured or unsecured reorganization claim, the court, even before it makes a ruling confirming the reorganization plan, may permit payment of the claim in the whole or part upon the petition of a trustee or by its own authority,.

(3)When granting permission under the provisions of the preceding paragraph, the court must take into consideration the status of transactions between the reorganizing company and the small or medium-sized enterprise referred to in the same paragraph, the reorganizing company's financial condition, the interest of any interested person and all other circumstances concerned.

(4)A trustee, when requested by a secured or unsecured reorganization creditor to file the petition referred to in paragraph (2), must report to the court to that effect immediately. In this case, if the trustee has decided not to file a petition, the trustee must report the reason for this to the court without delay.

(5)When it would be possible to make reorganization progress smoothly by paying a small secured or unsecured reorganization claim at an early stage, or significant hindrance would be caused to the continuation of the reorganizing company's business unless a small secured or unsecured reorganization claim is paid at an early stage, even before it makes a ruling confirming the reorganization plan, the court may permit payment of the claim upon the petition of a trustee.

(6)The provisions of paragraph (2) through the preceding paragraph do not apply to a reorganization claim that is a consensually-subordinated reorganization claim.

(7)The provisions of paragraph (1) do not apply when a right to impose taxes or other charges (excluding a claim for a foreign tax subject to mutual assistance) that is a secured or unsecured reorganization claim is extinguished on any of the following grounds:

Article 47-2If a set-off of a claim that belongs to the reorganizing company assets against a secured or unsecured reorganization claim conforms to the common interests of secured or unsecured reorganization creditors, a trustee may effect such a set-off with permission of the court.

Article 48(1)If a secured or unsecured reorganization creditor owes a debt to the reorganizing company at the time of commencement of the reorganization, the secured or unsecured reorganization creditor, when their claim and debt become suitable for a set-off prior to the expiration of the period for filing a proof of claims prescribed in Article 138, paragraph (1), may effect a set-off only within the period for filing a proof of claims, even if it is not prescribed in a reorganization plan. The same applies when the debt of the secured or unsecured reorganization creditor is subject to a time limit.

(2)When the debt owed by a secured or unsecured reorganization creditor to the reorganizing company at the time of commencement of the reorganization is a rent debt, the secured or unsecured reorganization creditor may effect a set-off with regard to any rent debt that is to become due after the commencement of the reorganization (including one that is to become due after the expiration of the period for filing a proof of claims referred to in the preceding paragraph; the same applies in the following paragraph) up to the amount equivalent to the six-month rent as of the time of commencement of the reorganization only within the period for filing a proof of claims referred to in the preceding paragraph, even if it is not prescribed in a reorganization plan.

(3)In the case referred to in the preceding paragraph, when the secured or unsecured reorganization creditor, with regard to their rent debt that is to become due after the commencement of the reorganization, has made payment of the debt after the commencement of the reorganization, the claim of the secured or unsecured reorganization creditor to refund the security deposit will be a common-benefit claim up to the amount paid within the amount equivalent to the six-month rent as of the time of commencement of the reorganization (when a set-off is effected under the provisions of the same paragraph, the amount of the rent debt from which the secured or unsecured reorganization creditor is relieved will be deducted).

(4)The provisions of the preceding two paragraphs apply mutatis mutandis to a debt for payment of ground rent or farmland rent.

Article 49(1)A secured or unsecured reorganization creditor may not effect a set-off in the following cases:

(2)The provisions of item (ii) through item (iv) of the preceding paragraph do not apply when the assumption of a debt prescribed in these provisions arose from any of the causes stated in the following items:

Article 49-2(1)A person that owes a debt to the reorganizing company may not effect a set-off in the following cases:

(2)The provisions of item (ii) through item (iv) of the preceding paragraph do not apply where the acquisition of a secured or unsecured reorganization claim prescribed in these provisions arose from any of the causes stated in the following items:

Article 50(1)If a ruling to commence reorganization is made, it is not permissible to file a petition to commence bankruptcy proceedings, commencement of rehabilitation proceedings, commencement of reorganization, or a petition of commencement of special liquidation, enforcement or related action prescribed in Article 24, paragraph (1), item, (ii), exercise of the security right on whole company assets or disposition to collect foreign tax arrears prescribed in item (vi) of the same paragraph against the reorganizing company's assets, or file a petition for an asset disclosure procedure based on a secured or unsecured reorganization claim, and the bankruptcy proceedings, the rehabilitation proceedings, the procedure for enforcement or related action prescribed in item (ii) of the same paragraph, procedure for the exercise of the security right on whole company assets and the disposition to collect foreign tax arrears prescribed in item (vi) of the same paragraph which have already been initiated against the reorganizing company's assets, and the assets disclosure procedure based on a secured or unsecured reorganization claim will be stayed, and the special liquidation proceedings will cease to be effective.

(2)When a ruling to commence reorganization is made, the disposition to collect national tax arrears prescribed in Article 24, paragraph (2) may not be enforced against the reorganizing company's assets for one year from the date of the order (or, if the reorganization is closed with no reorganization plan confirmed or a reorganization plan is confirmed before one year has elapsed from the date of the order, for the period until the proceedings are closed or the plan is confirmed), and the disposition to collect national tax arrears already initiated against the reorganizing company's assets will be stayed.

(3)If finding it necessary, upon the petition of a trustee or by its own authority, the court may extend the one-year period referred to in the preceding paragraph; provided, however, that the court must obtain consent from the person that has the power of collection in advance.

(4)The person that has the power of collection may give consent as referred to in the preceding paragraph.

(5)If finding it unlikely to cause hindrance to reorganization, upon the petition of a trustee or the person that has the power to collect a right to impose taxes or other charges (excluding a claim for a foreign tax subject to mutual assistance) or by its own authority, the court may order the continuation of the following proceedings or dispositions:

(6)If finding it necessary for reorganization, upon the petition of a trustee or by its own authority, the court may order the cancellation of the proceedings or the voidance of dispositions stated in the items of the preceding paragraph, while requiring or not requiring the provision of security.

(7)If the court finds, until a ruling to refer the proposed reorganization plan to a resolution is made, any assets which is the subject matter of the security right related to a secured reorganization claim and which is obviously unnecessary for the reorganization of the reorganizing company's business, upon the petition of a trustee or by its own authority, the court may make a ruling to cancel the prohibition of the exercise of the security right against these assets under the provisions of paragraph (1).

(8)A trustee, when requested by a secured reorganization creditor to file the petition referred to in the preceding paragraph, must report to the court to that effect immediately. In this case, if the trustee has decided not to file a petition, the trustee must report the reason to the court without delay.

(9)If a ruling to commence reorganization is made, the following claims are common-benefit claims:

(10)The prescription for a claim for money to be collected through the disposition to collect national tax arrears prescribed in Article 24, paragraph (2) will not run during the period in which the disposition to collect national tax arrears is prohibited or stayed pursuant to the provisions of paragraph (2) and paragraph (3).

(11)When a ruling to commence reorganization is made, the prescription for a fine, petty fine, and collection of equivalent value will not run until the reorganization is closed (when a ruling confirming the reorganization plan is made, the prescription will not run until the payment period specified in the reorganization plan as prescribed in Article 204, paragraph (2) expires (or until payment based on the reorganization plan is completed if this occurs prior to the expiration of the period)); provided, however, that this does not apply when the claim for the fine, petty fine, or collection of equivalent value in question is a common-benefit claim.

Article 51(1)In the proceedings or dispositions continued pursuant to the provisions of paragraph (5) of the preceding Article and the procedure for the exercise of the security right for which a petition may now be filed by reason of a cancellation ruling referred to in paragraph (7) of the same Article, distribution or delivery of payment (referred to as "distribution or delivery of payment" in this Article) may not be implemented; provided, however, that this does not apply to distribution or delivery of payment in relation to the right to impose taxes or other charges involved in the disposition continued pursuant to the provisions of paragraph (5), item (ii) of the preceding Article.

(2)In the proceedings prescribed in the main clause of the preceding paragraph (excluding auction proceedings to be conducted by reason of a right of retention that is intended to secure a secured or unsecured reorganization claim under the provisions other than those of the Commercial Code or the Companies Act; the same applies in the following paragraph), when any money to be appropriated for distribution or delivery of payment arises (or when a ruling confirming the reorganization plan is made if no such order has been made by the time when the money arises), an amount of money equivalent to the amount of the money to be appropriated (if distribution or delivery of payment has been implemented pursuant to the provisions of the proviso to the preceding paragraph, the amount of the distribution or delivery of payment will be deducted) must be delivered to a trustee (or the reorganizing company where the organs of the reorganizing company have restored their powers pursuant to the provisions of the first sentence of Article 72, paragraph (4) or where the reorganization is closed).

(3)When the reorganization has been closed before a ruling confirming the reorganization plan is made, notwithstanding the provisions of the main clause of paragraph (1), in the proceedings or dispositions prescribed in the main clause of the same paragraph, distribution or delivery of payment must be implemented with regard to any money to be appropriated for distribution or delivery of payment (excluding the money appropriated for distribution or delivery of payment pursuant to the provisions of the proviso to the same paragraph), unless it is not contrary to the nature of the proceedings or dispositions.

Article 52(1)When a ruling to commence reorganization is made, any action relating to the reorganizing company's assets are discontinued.

(2)A trustee may take over the action discontinued under the provisions of the preceding paragraph which does not relate to any secured or unsecured reorganization claim. In this case, a petition for taking over of the action may also be filed by the opponent.

(3)In the case referred to in the preceding paragraph, the opponent's claim for court costs against the reorganizing company is a common-benefit claim.

(4)When the reorganization is closed, any action relating to the reorganizing company's assets in which a trustee stands as a party will be discontinued.

(5)A stock company which has been the reorganizing company must take over an action discontinued pursuant to the provisions of the preceding paragraph (excluding an action referred to in Article 97, paragraph (1) when the grounds stated in Article 234, item (iii) or item (iv) occurred). In this case, a petition for taking over an action may also be filed by the opponent.

(6)If the reorganization is closed before the action discontinued pursuant to the provisions of paragraph (1) is taken over under the provisions of paragraph (2), the stock company that has been the reorganizing company will automatically take over the action.

Article 52-2(1)If an action filed by a reorganization creditor pursuant to the provisions of Article 423 or Article 424 of the Civil Code (Act No. 89 of 1896), action of avoidance or action of objection to a ruling upholding a request for avoidance filed under the provisions of the Bankruptcy Act or the Civil Rehabilitation Act is pending at the time of commencement of reorganization, the respective action is discontinued.

(2)A trustee may take over the action discontinued pursuant to the provisions of the preceding paragraph. In this case, a petition for taking over the action may also be filed by the opponent.

(3)In the case referred to in the preceding paragraph, the opponent's claim for court costs against the reorganization creditor, a bankruptcy trustee, or a trustee or supervisor empowered to avoid (meaning a supervisor empowered to avoid prescribed in Article 128, paragraph (2) of the Civil Rehabilitation Act; the same applies in paragraph (5)) in rehabilitation proceedings will be a common-benefit claim.

(4)If the reorganization is closed after the action discontinued pursuant to the provisions of paragraph (1) was taken over under the provisions of paragraph (2), the action will be discontinued.

(5)In the case referred to in the preceding paragraph, the reorganization creditor, a bankruptcy trustee, a trustee or supervisor empowered to avoid in rehabilitation proceedings must take over the action. In this case, a petition for taking over an action may also be filed by the opponent.

(6)If the reorganization is closed before the action discontinued pursuant to the provisions of paragraph (1) is taken over pursuant to the provisions of paragraph (2), any of the persons prescribed in the first sentence of the preceding paragraph will automatically take over the action.

Article 53The provisions of Article 52 apply mutatis mutandis to a case relating to the reorganizing company's assets that is pending before an administrative agency.

Article 54(1)A juridical act conducted by the reorganizing company after the commencement of reorganization with respect to the reorganizing company assets may not be asserted as effective in relation to the reorganization.

(2)A juridical act conducted by a stock company on the date of the ruling to commence reorganization against the stock company itself will be presumed to be conducted after the commencement of reorganization.

Article 55(1)If a secured or unsecured reorganization creditor has acquired a right based on a secured or unsecured reorganization claim after the commencement of reorganization with respect to reorganizing company assets, if it is not by way of an act conducted by a trustee or the reorganizing company, the reorganization creditor may not assert the acquisition of the right as effective in relation to the reorganization.

(2)The provisions of paragraph (2) of the preceding Article apply mutatis mutandis to the acquisition of a right referred to in the preceding paragraph that takes place on the day on which a ruling to commence reorganization is made.

Article 56(1)A registration or a provisional registration under the provisions of Article 105, item (i) of the Real Property Registration Act (Act No. 123 of 2004), which is made with respect to real property or a vessel after the commencement of reorganization based on a cause of registration that occurred prior to the commencement of reorganization, may not be asserted as effective in relation to the reorganization; provided, however, that this does not apply to a registration or provisional registration made by a person entitled to demand registration, in good faith of the commencement of reorganization .

(2)The provisions of the preceding paragraph apply mutatis mutandis to a registration or provisional registration with respect to the establishment, transfer or modification of a right, or registration with respect to the establishment, transfer or modification of a security right on whole company assets.

Article 57(1)Payment made to a reorganizing company in good faith after the commencement of reorganization may also be asserted as effective in relation to the reorganization.

(2)Payment made to the reorganization debtor after the commencement of reorganization in good faith may be asserted as effective in relation to the reorganization only to the extent that the reorganizing company assets have gained.

Article 58(1)If a reorganization is commenced against a stock company which is the drawer or endorser of a bill of exchange, if the drawee or the reserve drawee has accepted or paid the bill in good faith, the drawee or the reserve drawee may exercise their right over a claim arising from the acceptance or payment as a reorganization creditor.

(2)The provisions of the preceding paragraph apply mutatis mutandis to checks and to securities issued for the purpose of delivering money or any other items or securities.

Article 59For the purpose of application of the provisions of the preceding three Articles, the absence of knowledge of the commencement of reorganization is presumed prior to a public notice given under the provisions of Article 43, paragraph (1), and the existence of knowledge of the commencement of reorganization is presumed after a public notice of the commencement of reorganization.

Article 60(1)If a reorganizing company holds a property right jointly with another or other persons, if a reorganization has commenced, a trustee may make a claim for division of the property in co-ownership even if there is an agreement between the co-owners to the effect that division is not made.

(2)In the case referred to in the preceding paragraph, other co-owners may acquire the reorganizing company's co-ownership interest in the assets by paying reasonable compensation.

Article 61(1)If both the reorganizing company and its counterparty under a bilateral contract have not yet completely performed their obligations by the time of commencement of reorganization, a trustee may cancel the contract or may perform the reorganizing company's obligation and request the counterparty to perform their obligation.

(2)In the case referred to in the preceding paragraph, the counterparty may set a reasonable period and make a demand on a trustee that the trustee should give a definite answer within that period with regard to whether they will cancel the contract or request the performance of the obligation. In this case, if the trustee fails to give a definite answer within that period, it is deemed that the trustee waives their right to cancel under the provisions of the same paragraph.

(3)The provisions of the preceding two paragraphs do not apply to a collective agreement.

(4)If the reorganizing company's obligation is to be performed pursuant to the provisions of paragraph (1), the claim held by the counterparty is a common-benefit claim.

(5)The provisions of Article 54 of the Bankruptcy Act apply mutatis mutandis when a contract is cancelled under the provisions of paragraph (1). In this case, in paragraph (1) of the same Article, the term "bankruptcy creditor" is deemed to be replaced with "reorganization creditor"; in paragraph (2) of the same Article, the term "bankrupt" is deemed to be replaced with "reorganizing company"; the term "bankruptcy estate" is deemed to be replaced with "reorganizing company assets"; and the term "holder of a claim on the estate" is deemed to be replaced with "holder of a common-benefit claim".

Article 62(1)The counterparty to a bilateral contract that has an obligation to provide continuous performance to the reorganizing company, after the commencement of reorganization, may not refuse to perform the obligation on the grounds that no payment is made with regard to the secured or unsecured reorganization claim arising from the performance provided prior to the filing of a petition to commence reorganization.

(2)A claim arising from the performance that is provided by the counterparty to a bilateral contract referred to in the preceding paragraph after the filing of a petition to commence reorganization and prior to the commencement of reorganization (in the case of continuous performance for which the amount of claim should be calculated for each specific period of time, the claim arising from the performance provided within the period that includes the date of filing of the petition will be included) will be a common-benefit claim.

(3)The provisions of the preceding two paragraphs do not apply to a labor contract.

Article 63The provisions of Article 56, Article 58, and Article 59 of the Bankruptcy Act apply mutatis mutandis when a reorganization has commenced. In this case, in Article 56, paragraph (1) of the same Act, the phrase "Article 53, paragraph (1) and paragraph (2)" is deemed to be replaced with "Article 61, paragraph (1) and paragraph (2) of the Corporate Reorganization Act", and the term "bankrupt" is deemed to be replaced with "reorganizing company"; in Article 56, paragraph (2) of the same Act, the term "claim on the estate" is deemed to be replaced with "common-benefit claim"; in Article 58, paragraph (1) of the same Act, the phrase "commencement of bankruptcy proceedings" is deemed to be replaced with "commencement of reorganization"; in Article 54, paragraph (1) of the same Act as applied mutatis mutandis pursuant to Article 58, paragraph (3) of the same Act, the term "bankruptcy creditor" is deemed to be replaced with "reorganization creditor"; in Article 59, paragraph (1) of the same Act, the term "bankruptcy proceedings" is deemed to be replaced with "reorganization"; in Article 59, paragraph (2) of the same Act, the phrase "The claim under the provisions of the preceding paragraph will belong to the bankruptcy estate if it is held by the bankrupt or is a bankruptcy claim if it is held by the counterparty." is deemed to be replaced with "The claim under the provisions of the preceding paragraph is a reorganization claim if it is held by the counterparty".

Article 64(1)The commencement of reorganization does not affect a right to recover, from the reorganizing company, assets that does not belong to the reorganizing company.

(2)The provisions of Article 63 and Article 64 of the Bankruptcy Act apply mutatis mutandis where a reorganization has commenced. In this case, in Article 63, paragraph (1) of the same Act, the phrase "the ruling to commence bankruptcy proceedings" is deemed to be replaced with "the ruling to commence reorganization proceedings"; in the proviso to Article 63, paragraph (1) and Article 64 of the same Act, the term "a bankruptcy trustee" is deemed to be replaced with "a trustee"; in Article 63, paragraph (2) of the same Act, the phrase "Article 53, paragraph (1) and paragraph (2)" is deemed to be replaced with "Article 61, paragraph (1) and paragraph (2) of the Corporate Reorganization Act"; in Article 63, paragraph (3) of the same Act, the term "paragraph (1)" is deemed to be replaced with "the preceding two paragraphs", and the term "the same paragraph" is deemed to be replaced with "paragraph (1)"; in Article 64, paragraph (1) of the same Act, the term "bankrupt" is deemed to be replaced with "stock company", and the phrase "reorganization of bankruptcy proceedings" is deemed to be replaced with "commencement of reorganization".

Article 65(1)When a director, executive officer or liquidator of a reorganizing company intends to conduct a transaction that falls within the line of the business of the reorganizing company for themselves or a third party during the period after the commencement of reorganization until their close, notwithstanding the provisions of Article 356, paragraph (1) of the Companies Act (including cases where applied mutatis mutandis pursuant to Article 419, paragraph (2) or Article 482, paragraph (4) of the same Act), the person must disclose the important facts concerning the transaction to a trustee and obtain approval; provided, however, that this does not apply for the period in which the organs of the reorganizing company have restored their powers pursuant to the provisions of the first sentence of Article 72, paragraph (4).

(2)The director, executive office, or liquidator that has conducted the transaction referred to in the main clause of the preceding paragraph, must report the important facts concerning the transaction to a trustee without delay after the transaction.

(3)When a director, executive officer or liquidator of the reorganizing company has conducted the transaction referred to in the main clause of paragraph (1) in violation of the provisions of the main clause of the same paragraph, the amount of the profit obtained by the director, executive officer, liquidator, or third party as a result of the transaction will be presumed to be the amount of damage suffered by the reorganizing company.

Article 66(1)No director, accounting advisor, auditor, executive officer, or liquidator of the reorganizing company may claim remuneration (meaning remuneration prescribed in Article 361, paragraph (1) of the Companies Act; the same applies in the following paragraph) from the reorganizing company for the period after the commencement of reorganization until their close; provided, however, that this does not apply for the period in which the organs of the reorganizing company have restored their powers pursuant to the provisions of the first sentence of Article 72, paragraph (4).

(2)The content of remuneration that an individual director, accounting advisor, auditor, executive officer, and liquidator are to receive in the case referred to in the proviso to the preceding paragraph will be, notwithstanding the provisions of Article 361, paragraph (1) of the Companies Act (including cases where applied mutatis mutandis pursuant to Article 482, paragraph (4) of the same Act) and paragraph (3) of the Article, and Article 379, paragraph (1) and paragraph (2), Article 387, paragraph (1) and paragraph (2), and Article 404, paragraph (3) of the same Act, determined by a trustee with permission of the court.

Article 86(1)The following acts (excluding acts concerning the provision of security or extinguishment of debt) may be avoided in the interest of the reorganizing company assets after the commencement of reorganization proceedings:

(2)With respect to an act concerning the extinguishment of debt conducted by the reorganizing company, if the value of the performance received by the creditor exceeds the amount of debt extinguished by the act, and the act satisfies any of the requirements stated in the items of the preceding paragraph, the act may be avoided in the interest of the reorganizing company assets after the commencement of reorganization only with regard to the part other than the part equivalent to the amount of debt extinguished.

(3)Any gratuitous act, or any onerous act that should be deemed to be equal to such an act, conducted by the reorganizing company after or within six months prior to suspension of payments, etc. may be avoided in the interest of the reorganizing company assets after the commencement of reorganization.

Article 86-2(1)When a reorganizing company has received reasonable consideration from the other party to the act, after conducting an act of disposing of its assets, the act may be avoided in the interest of the reorganizing company assets after the commencement of reorganization, if it satisfies all of the following requirements:

(2)For the purpose of application of the provisions of the preceding paragraph, if the other party to the act in question is any of the following persons, the other party will be presumed to have known, at the time of the act, that the reorganizing company had the intention of concealing or similarly disposing as referred to in item (ii) of the same paragraph:

Article 86-3(1)The following acts (limited to acts concerning the provision of security or extinguishment of debt conducted with regard to an existing debt) may be avoided in the interest of the reorganizing company assets after the commencement of reorganization:

(2)For the purpose of application of the provisions of item (i) of the preceding paragraph, in the following cases, the creditor is presumed to have known, at the time of the act stated in the same item, either of the facts specified in (a) or (b) below for the cases stated in (a) or (b), respectively (in the case stated in (a) of the same item, both the fact that the reorganizing company was unable to pay debts and that the reorganizing company suspended payments):

(3)For the purpose of application of the provisions of the items of paragraph (1), after suspension of payments took place (limited to suspension that took place within one year prior to the filing of a petition to commence reorganization), the reorganizing company is presumed to have been unable to pay debts.

Article 87(1)The provisions of paragraph (1), item (i) of the preceding Article do not apply when a person that has received payment of a negotiable instrument from the reorganizing company would lose their right on the negotiable instrument against one or more debtors on the negotiable instrument unless they receive the payment.

(2)In the case referred to in the preceding paragraph, if the final obligor for redemption or the person that had entrusted the drawing of the negotiable instrument knew or was negligent in not knowing, at the time of drawing, the fact that suspension of payments had taken place, a trustee may have these persons redeem the money paid by the reorganizing company to them.

(3)The provisions of paragraph (1) of the preceding Article do not apply to any act concerning the provision of security or extinguishment of debt, which is conducted by the reorganizing company with regard to right to impose taxes or other charges (excluding a claim for a foreign tax subject to mutual assistance) or a claim for a fine or court costs arising prior to the commencement of reorganization as prescribed in Article 142, item (ii), for the person that has the power to collect the claim.

Article 88(1)If an act necessary for duly asserting the establishment, transfer, or modification of a right against a third party (including a provisional registration) was conducted after suspension of payments, etc. took place, the act may be avoided if it was conducted after 15 days had elapsed since the date of establishment, transfer, or modification of the right, while knowing that suspension of payments, etc. had taken place; provided, however, that this does not apply to a definitive registration based on prior unavoidable provisional registration.

(2)The provisions of the preceding paragraph apply mutatis mutandis to a registration based on which the acquisition of a right will become effective.

Article 89Exercising a right of avoidance is not precluded even when an act to be avoided is accompanied by an enforceable title of obligation or based on an act of enforcement.

Article 90Any act conducted not less than one year before the date of filing of a petition to commence reorganization (excluding the act prescribed in Article 86, paragraph (3)) may not be avoided on the grounds that the act was conducted after suspension of payments had taken place or while knowing the fact of suspension of payments.

Article 91(1)The exercise of a right of avoidance restores the reorganizing company assets to their original state.

(2)If an act prescribed in Article 86, paragraph (3) is avoided, if the other party did not know the fact that suspension of payments, etc. had taken place nor the fact that the act would prejudice any secured or unsecured reorganization creditor at the time of the act, it will be sufficient for the other party to return the actual gains that they enjoy.

Article 91-2(1)When an act prescribed in Article 86, paragraph (1) or paragraph (3) or Article 86-2, paragraph (1) is avoided, the other party may exercise a right specified in each of the following items for the categories stated in the respective items:

(2)Notwithstanding the provisions of item (ii) of the preceding paragraph, in the cases stated in the item, at the time of the act in question, if the reorganizing company had the intention of concealing or similarly disposing of the assets that it received as consideration for the act and the other party knew that the reorganizing company had the intention, the other party may exercise a right specified in each of the following items for the categories stated in the respective items:

(3)For the purpose of application of the provisions of the preceding paragraph, if the other party to the act in question is any of the persons stated in the items of Article 86-2, paragraph (2), the other party will be presumed to have known, at the time of the act, that the reorganizing company had the intention of concealing or similarly disposing referred to in the preceding paragraph.

(4)When a trustee intends to avoid an act prescribed in Article 86, paragraph (1) or paragraph (3) or Article 86-2, paragraph (1), in lieu of requesting return of the assets that should be returned to the reorganizing company assets pursuant to the provisions of paragraph (1) of the preceding Article, the trustee may request the other party to reimburse the amount obtained by deducting the amount that will be included in the scope of common-benefit claims pursuant to the provisions of the preceding three paragraphs (in the case stated in paragraph (1), item (i), the value of the counter-performance received by the reorganizing company) from the value of the assets to be returned.

Article 92If an act prescribed in Article 86-3, paragraph (1) is avoided and the other party returns the performance that they have received or reimburses the value of that performance, this restores the other party's claim to its original state.

Article 93(1)In the following cases, a right of avoidance may also be exercised against any subsequent acquirers:

(2)The provisions of Article 91, paragraph (2) apply mutatis mutandis when a right of avoidance is exercised pursuant to the provisions of item (iii) of the preceding paragraph.

Article 94(1)If a provisional remedy under the provisions of Article 39-2, paragraph (1) (including cases where applied mutatis mutandis pursuant to Article 44, paragraph (2)) is issued, if a ruling to commence reorganization is made, a trustee may continue the procedure related to the provisional remedy.

(2)If a trustee does not continue the procedure pertaining to a provisional remedy referred to in the preceding paragraph pursuant to the provisions of the same paragraph within one month after an the ruling to commence reorganization proceedings is made, the provisional remedy ceases to be effective.

(3)If a trustee intends to continue the procedure related to a provisional remedy referred to in paragraph (1) pursuant to the provisions of the same paragraph, if the whole or part of the security prescribed in Article 39-2, paragraph (2) (including when applied mutatis mutandis pursuant to Article 44, paragraph (2)) does not belong to the reorganizing company assets, the trustee must substitute, for the whole or part of the security, another security by way of assets that belong to the reorganizing company assets.

(4)The provisions of Article 18 of the Civil Provisional Remedies Act (Act No. 91 of 1989) and Chapter II, Section 4 (excluding Article 37, paragraph (5) through paragraph (7)) and Section 5 of the same Act apply mutatis mutandis to a provisional remedy for the procedure to be continued by a trustee pursuant to the provisions of paragraph (1).

Article 95(1)A right of avoidance is exercised by a trustee by filing an action, making a request for avoidance, or filing a defense.

(2)Cases of the action and request for avoidance referred to in the preceding paragraph will be subject to the jurisdiction of the reorganization court.

Article 96(1)When making a request for avoidance, the requester must make a prima facie showing of the facts constituting grounds for the avoidance.

(2)A judicial decision to uphold a request for avoidance or dismiss it must be made by a ruling with reasons attached.

(3)When making a ruling referred to in the preceding paragraph, the court must interrogate the other party or any subsequent acquirers.

(4)If a ruling upholding a request for avoidance is made, the written judgment will be served upon the parties concerned. In this case, the provisions of the main clause of Article 10, paragraph (3) do not apply.

(5)The proceedings for a request for avoidance will be closed upon the end of reorganization.

Article 97(1)A person that disagrees with a ruling upholding a request for avoidance may file an action to oppose within an inalterable period of one month after the day on which the person was served with the order.

(2)The action referred to in the preceding paragraph is subject to the jurisdiction of the reorganization court.

(3)A judgment rendered with regard to the action referred to in paragraph (1), except where the action is denied as unlawful, approves, changes, or sets aside a ruling upholding a request for avoidance.

(4)When a judgment which approves the whole or part of a ruling upholding a request for avoidance becomes final and binding, the order (limited to the part approved by the judgment) has the same effect as a final and binding judgment. The same applies to a ruling upholding a request for avoidance when the action referred to in the paragraph (1) is not filed within the period prescribed in the same paragraph, is withdrawn or is denied.

(5)With regard to a judgment to approve or change the ruling referred to in paragraph (1), the court in charge of the case may declare provisional enforcement, as prescribed by Article 259, paragraph (1) of the Code of Civil Procedure.

(6)The action referred to in paragraph (1), notwithstanding the provisions of Article 52, paragraph (4), will be concluded if any of the grounds stated in Article 234, item (ii) or item (v) have occurred.

Article 98A right of avoidance may not be exercised if two years have passed since the date of commencement of reorganization (when bankruptcy proceedings or rehabilitation proceedings have been commenced prior to the date of commencement of reorganization, this period starts from the date of commencement of bankruptcy proceedings or rehabilitation proceedings). The same applies when 20 years have passed since the date of the act to be avoided.

Article 99(1)If a ruling to commence reorganization is made, the court, if finding it necessary, upon the petition of a trustee or by its own authority, may issue the following provisional remedies:

(2)The court may change or void a provisional remedy issued under the provisions of the preceding paragraph.

(3)An immediate appeal may be filed against a provisional remedy issued under the provisions of paragraph (1) or a ruling made under the provisions of the preceding paragraph.

(4)The immediate appeal referred to in the preceding paragraph does not have the effect of a stay of enforcement.

(5)If a judicial decision prescribed in paragraph (3) and a judicial decision on the immediate appeal referred to in the same paragraph are made, the written judgment must be served upon the parties concerned. In this case, the provisions of the main clause of Article 10, paragraph (3) do not apply.

Article 100(1)If a ruling to commence reorganization is made, when any of the claims prescribed in the items of paragraph (1) of the preceding Article exist and the court finds it necessary, upon the petition of a trustee or by its own authority, the court may make a judicial decision, by a ruling, to assess the amount of the claim and other particulars (referred to as an "assessment order on the liability of officers" in this Section).

(2)When filing the petition referred to in the preceding paragraph, the petitioner must make a prima facie showing of the fact constituting the cause of the claim.

(3)When the court commences proceedings for an assessment order on the liability of officers by its own authority, it must make a ruling to that effect.

(4)When a petition referred to in paragraph (1) is filed or a ruling referred to in the preceding paragraph is made, for the purpose of interruption of prescription, it is deemed that demand by litigation is made.

(5)The proceedings for an assessment order on liability of officers will be closed upon the end of a reorganization (excluding the case where an assessment order on the liability of officers is already made prior to the end of reorganization).

Article 101(1)An assessment order on the liability of officers and a ruling to dismiss the petition referred to in paragraph (1) of the preceding Article must state the reasons for this ruling.

(2)When making a ruling referred to in the preceding paragraph, the court must interrogate the officers in question.

(3)If an assessment order on the liability of officers is made, the written judgment must be served upon the parties concerned. In this case, the provisions of the main clause of Article 10, paragraph (3) do not apply.

Article 102(1)A person that disagrees with an assessment order on the liability of officers may file an action to oppose within an inalterable period of one month after the day on which the person was served the order.

(2)The action referred to in the preceding paragraph is subject to the jurisdiction of the reorganization court.

(3)In an action referred to in paragraph (1), a trustee must stand as a defendant if it is filed by an officers, and an officers must stand as a defendant if it is filed by a trustee.

(4)A judgment rendered with regard to the action referred to in paragraph (1), except where the action is denied as unlawful, approves, changes, or sets aside the assessment order on the liability of officers.

(5)A judgment that approves or changes an assessment order on the liability of officers, for the purpose of enforcement has the same effect as a judgment to order performance.

(6)With regard to a judgment that approves or changes an assessment order on the liability of officers, the court in charge of the case may declare provisional enforcement, as prescribed by Article 259, paragraph (1) of the Code of Civil Procedure.

Article 103If an action referred to in paragraph (1) of the preceding Article is not filed within the period referred to in the same paragraph, is withdrawn, or is denied, the assessment order on the liability of officers has the same effect as a final and binding judgment to order performance.

Article 114(1)The court must convoke a stakeholders meeting upon the petition of any of the persons stated in the following items. The court may convoke a stakeholders meeting without these petitions if finding it appropriate:

(2)Notwithstanding the provisions of the first sentence of the preceding paragraph, when the reorganizing company is unable to pay its debts in full with its assets at the time of commencement of reorganization, the persons stated in item (iv) and item (vi) of the same paragraph may not file a petition referred to in the first sentence of the same paragraph.

Article 115(1)On the date of a stakeholders meeting, a trustee, the reorganization company, secured or unsecured reorganization creditors who filed claims, shareholders, and any person that has incurred a debt or provided security for the reorganization of the reorganizing company's business must be summoned; provided, however, that when the ruling referred to in Article 42, paragraph (2) is made, secured or unsecured reorganization creditor who filed claims are not required to be summoned, except on the date of a stakeholders meeting aimed for adopting a resolution on a proposed reorganization plan.

(2)Notwithstanding the provisions of the main clause of the preceding paragraph, not summoning secured or unsecured reorganization creditors who filed claims or shareholders that may not exercise their voting rights is allowed.

(3)A notice of the date of a stakeholders meeting must be given to the labor union or relevant representative prescribed in Article 46, paragraph (3), item (iii).

(4)The court must give a public notice of the date of a stakeholders meeting and the particulars that are the subject of the meeting.

(5)If it is rendered, on the date of a stakeholders meeting, that the meeting will be postponed or continued, the provisions of paragraph (1) and the preceding two paragraphs do not apply.

Article 116Stakeholder meetings are directed by the court.

Article 117(1)If there is a committee consisting of reorganization creditors, upon the petition of an interested person, the court may give approval to the participation of the committee in reorganization as prescribed in this Act; provided, however, that this applies only if all of the following requirements are met:

(2)If finding it necessary, the court may request the committee approved pursuant to the provisions of the preceding paragraph (referred to as the "reorganization creditors committee" below) to state its opinions in reorganization.

(3)The reorganization creditors committee may state its opinions to the court or a trustee (or a trustee or the reorganizing company if the organs of the reorganizing company have restored their powers pursuant to the provisions of the first sentence of Article 72, paragraph (4)) in reorganization.

(4)If it is found that the reorganization creditors committee has carried out activities that contribute to ensuring the reorganization of the reorganizing company's business, upon the petition of a reorganization creditor that has incurred necessary expenses for the activities, the court may permit reimbursement of the amount of expenses, which it finds reasonable, to the reorganization creditor from the reorganizing company assets.

(5)Upon the petition of an interested person or by its own authority, the court may revoke the approval given pursuant to the provisions of paragraph (1) at any time.

(6)The provisions of paragraph (1) apply mutatis mutandis when there is a committee consisting of secured reorganization creditors, and the provisions of paragraph (2) through the preceding paragraph apply mutatis mutandis when there is a committee approved under the provisions of paragraph (1) as applied mutatis mutandis pursuant to this paragraph (referred to as the "secured reorganization creditors committee" below).

(7)The provisions of paragraph (1) apply mutatis mutandis when there is a committee consisting of shareholders, and the provisions of paragraph (2) through paragraph (5) apply mutatis mutandis when there is a committee approved under the provisions of paragraph (1) as applied mutatis mutandis pursuant to this paragraph (referred to as the "shareholders committee" in Article 121).

Article 118(1)A court clerk, when approval is given pursuant to the provisions of paragraph (1) of the preceding Article, without delay, must give a notice to a trustee (or the reorganizing company if the organs of the reorganizing company have restored their powers pursuant to the provisions of the first sentence of Article 72, paragraph (4)) to that effect.

(2)Upon receiving the notice under the provisions of the preceding paragraph, without delay, a trustee must hear opinions from the reorganization creditors committee with regard to the particulars concerning the administration of the reorganization company's business and assets.

Article 119(1)A trustee, when having submitted written reports, inventories or balance sheets (meaning written reports, inventory of assets or balance sheets; the same applies in this Article) to the court pursuant to the provisions of Article 83, paragraph (3) or paragraph (4) or Article 84, without delay, must also submit the written reports, inventories or balance sheets to the reorganization creditors committee.

(2)If a trustee, in the case referred to in the preceding paragraph, has filed a petition referred to in Article 12, paragraph (1), alleging that the written reports, inventories or balance sheets in question contain a detrimental part prescribed in Article 12, paragraph (1), it will be sufficient for the trustee to submit the written reports, inventories or balance sheets excluding the relevant detrimental part to the reorganization creditors committee.

Article 120(1)The reorganization creditors committee, when it is necessary for the interest of reorganization creditors as a whole, may request the court to order that a trustee make a report under the provisions of Article 84, paragraph (2) with regard to the status of the administration of the reorganizing company's business and assets and other necessary particulars concerning the reorganization of the reorganizing company's business.

(2)The court that has received a request made under the provisions of the preceding paragraph, when it finds the request appropriate, must order that a trustee make a report under the provisions of Article 84, paragraph (2).

Article 121The provisions of the preceding three Articles apply mutatis mutandis when there is a secured reorganization creditors committee or a shareholders committee.

Article 122(1)Secured or unsecured reorganization creditors or shareholders, with permission of the court, may jointly or independently appoint one or more representatives.

(2)If finding it necessary in order to ensure smooth progress in reorganization, the court may specify a reasonable timeframe and recommend that secured or unsecured reorganization creditors or shareholders appoint a representative.

(3)A representative may perform any and all acts involved in reorganization in the interest of the secured or unsecured reorganization creditors or shareholders that appoint them.

(4)If there are two or more representatives for one secured or unsecured reorganization creditor or one shareholder, they exercise their powers jointly; provided, however, that it is sufficient that a manifestation of intention by a third party is made to any one of them.

(5)The court may set aside a ruling of permission referred to in paragraph (1) or a ruling of appointment referred to in paragraph (1) of the following Article when it finds the exercise of powers by the representative to be particularly unfair.

(6)Secured or unsecured reorganization creditors or shareholders may dismiss at any time the representative that they have appointed.

Article 123(1)When there are an extremely large number of secured or unsecured reorganization creditors or shareholders that have common interest, if any of these secured or unsecured reorganization creditors or shareholders, despite the recommendation made under paragraph (2) of the preceding Article, does not appoint a representative within the period referred to in the same paragraph, and the court finds that the progress of reorganization would be hindered unless a representative is appointed, on behalf of the secured or unsecured reorganization creditors or shareholders, the court may appoint a representative that it considers suitable.

(2)When appointing a representative under the provisions of the preceding paragraph, the court must obtain consent of the representative in question.

(3)If a representative is appointed under the provisions of paragraph (1), the representative is deemed to be appointed by the principal (the person for which the representative is appointed under the provisions of the same paragraph; the same applies in paragraph (6)) under the provisions of paragraph (1) of the preceding Article.

(4)A representative appointed under the provisions of paragraph (1) may resign with permission of the court if there are justifiable grounds.

(5)A representative appointed under the provisions of paragraph (1) may receive payment of the following from the reorganizing company assets:

(6)With regard to the relationships between a representative appointed under the provisions of paragraph (1) and the principal, the provisions of Article 644 through Article 647 and Article 654 of the Civil Code apply mutatis mutandis.

Article 124(1)If it is found that a secured or unsecured reorganization creditor, shareholder, or representative or their agent has contributed to ensuring the reorganization of the reorganizing company's business, upon the petition of a trustee or by its own authority, the court may grant permission to the effect that the expenses incurred by these persons for the administration of processes concerned will be reimbursed or compensation will be paid to them from the reorganizing company assets.

(2)An immediate appeal may be filed against a ruling made under the provisions of the preceding paragraph.

Article 125(1)After the commencement of reorganization, if finding it necessary, upon the petition of an interested person or by its own authority, the court may make a disposition ordering that an examiner conducts an examination or states their opinions, targeting the whole or part of the following particulars:

(2)When making the disposition referred to in the preceding paragraph (referred to as an "examination order" below), in the examination order, the court must appoint one or more examiners and specify the particulars for which the examiner or examiners should conduct an examination or state their opinions, and the period during which they should submit the report or state their opinions to the court.

(3)The court may change or set aside an examination order.

(4)An immediate appeal may be filed against an examination order and a ruling made under the provisions of the preceding paragraph.

(5)The immediate appeal referred to in the preceding paragraph does not have the effect of a stay of enforcement.

(6)If a judicial decision prescribed in paragraph (4) and a judicial decision on the immediate appeal referred to in the same paragraph are made, the written judgment must be served upon the parties concerned. In this case, the provisions of the main clause of Article 10, paragraph (3) do not apply.

Article 126The provisions of Article 67, paragraph (2), Article 68, the main clause of Article 69, paragraph (1), Article 77, Article 80, and Article 81, paragraph (1) through paragraph (4) apply mutatis mutandis to an examiner.

Article 127The following claims are common-benefit claims:

Article 128(1)A claim arising from the borrowing of funds or any other act conducted by a temporary administrator with respect to the business and assets of the company awaiting reorganization based on their authority will be a common-benefit claim.

(2)If the company awaiting reorganization (excluding cases where a temporary administrator is appointed; the same applies in this paragraph and paragraph (4)), after a petition to commence reorganization is filed and before reorganization is commenced, borrows funds, purchasing raw materials or conducting any other act indispensable for the continuation of the business of the company awaiting reorganization, the court may grant permission to the effect that the other party's claim arising from the act is common-benefit claim.

(3)The court may empower a supervisor to give approval in lieu of the permission referred to in the preceding paragraph.

(4)If the company awaiting reorganization has conducted any of the acts prescribed in paragraph (2) with permission referred to in paragraph (2) or approval referred to in the preceding paragraph, the other party's claim arising from the act is a common-benefit claim.

Article 129Claims for withholding income tax, consumption tax, liquor tax, tobacco tax, gasoline tax, local road tax, petroleum gas tax, petroleum and coal tax, local consumption tax, prefectural tobacco tax (including metropolitan tobacco tax) and municipal tobacco tax (including special ward tobacco tax) collected by the filing and payment of taxes, and for local tax payable through collection by a person in charge of special collection, which arise against the reorganizing company from causes occurring prior to the commencement of reorganization, will be common-benefit claims if they are not yet due at the time of commencement of reorganization.

Article 130(1)If a ruling to commence reorganization is made against a stock company, a claim for the salary of an employee of the stock company for the six months preceding the commencement of reorganization and a claim for a refund of a fidelity guarantee deposit of an employee of the stock company which arises from a cause occurring prior to the commencement of reorganization will be common-benefit claims.

(2)In the case prescribed in the preceding paragraph, a claim for severance pay of an employee of the stock company who has retired before a ruling confirming the reorganization plan is made will be a common-benefit claim for an amount equivalent to the total amount of the employee's salary for the six months preceding retirement or one-third of the amount of the severance pay, whichever is larger.

(3)Notwithstanding the provisions of the preceding paragraph, a claim for severance pay referred to in the same paragraph, if it is a claim for periodic payments, is a common-benefit claim for an amount equivalent to one-third of the amount of each periodic payment.

(4)The provisions of the preceding two paragraphs do not apply to a claim for a severance pay which is a common-benefit claim pursuant to the provisions of Article 127.

(5)In the case prescribed in paragraph (1), a claim for refund of any deposit of an employee of a stock company which arises from a cause occurring prior to the commencement of reorganization is a common-benefit claim for an amount equivalent to the total amount of the employee's salaries for the six months preceding the commencement of reorganization or one-third of the amount of the deposit, whichever is larger.

Article 131(1)If a bond administrator or trustee company prescribed in Article 43, paragraph (1), item (v) intends to administer the processes concerning the administration of corporate bonds that are secured or unsecured reorganization claims, if finding it necessary in order to achieve the purpose of reorganization proceedings, the court may grant permission to the effect that the claim of the bond administrator or trustee company for expenses to be incurred for the administration of the processes against the reorganizing company is a common-benefit claim.

(2)Even when a bond administrator or trustee company referred to in the preceding paragraph has administered the processes concerning the administration of corporate bonds that are secured or unsecured reorganization claims without the permission referred to in the same paragraph, if it is found that the bond administrator or trustee company has contributed to ensuring the reorganization of the reorganizing company's business, the court may grant permission to the effect that a claim for reimbursement of the expenses incurred for the administration of the processes will be a common-benefit claim for an amount that the court finds reasonable by taking into consideration the degree of their contribution.

(3)The court may grant permission to the effect that a claim of a bond administrator or trustee company referred to in paragraph (1) for remuneration arising from an occurrence after the commencement of reorganization will be a common-benefit claim for an amount that the court finds reasonable.

(4)A claim for which permission is obtained under the provisions of the preceding three paragraphs will be a common-benefit claim.

(5)An immediate appeal may be filed against a ruling giving permission under the provisions of paragraph (1) through paragraph (3).

Article 132(1)Common-benefit claims may be paid at any time even if it is not prescribed in a reorganization plan.

(2)Common-benefit claims will be paid in preference to secured or unsecured reorganization claims

(3)If enforcement or provisional seizure is enforced against the reorganizing company's assets based on a common-benefit claim, if the enforcement or provisional seizure would cause significant hindrance to the reorganization of the reorganizing company's business and the reorganizing company additionally has adequate assets that are easy to realize, after the commencement of reorganization, upon the petition of a trustee (or the reorganizing company if the organs of the reorganizing company have restored their powers pursuant to the provisions of the first sentence of Article 72, paragraph (4); the same applies in paragraph (3) of the following Article) or by its own authority, the court may order the stay or cancellation of the procedure for enforcement or provisional seizure, while requiring or not requiring the provision of security. The same applies to the stay or voidance of a disposition made by the same procedure as that for making a disposition to collect national tax arrears, based on a claim for a foreign tax subject to mutual assistance that is a common-benefit claim against the reorganizing company's assets.

(4)The court may change or set aside a ruling to stay issued under the provisions of the preceding paragraph.

(5)An immediate appeal may be filed against a ruling to stay or order to set aside issued under the provisions of paragraph (3) and a ruling made under the provisions of the preceding paragraph.

(6)The immediate appeal referred to in the preceding paragraph does not have the effect of a stay of enforcement.

Article 133(1)When it has become obvious that the reorganizing company assets are insufficient for payment of the total amount of common-benefit claims, common-benefit claims will be paid from the reorganizing company assets, notwithstanding any priorities specified in laws and regulations, in proportion to the amount of each claim; provided, however, that this does not preclude the effect of any right of retention, special statutory lien, pledge and mortgage that exists for common-benefit claims.

(2)In the case prescribed in the main clause of the preceding paragraph, the provisions of paragraph (1) of the preceding Article do not apply.

(3)In the case prescribed in the main clause of paragraph (1), upon the petition of a trustee or by its own authority, may order the cancellation of the procedure for enforcement or provisional seizure that has already been initiated against the reorganizing company's assets based on a common-benefit claim. The same applies to the voidance of a disposition made by the same procedure as that for making a disposition to collect national tax arrears, based on a claim for a foreign tax subject to mutual assistance that is a common-benefit claim against the reorganizing company's assets.

(4)An immediate appeal may be filed against a cancellation order issued under the provisions of the preceding paragraph.

(5)The immediate appeal referred to in the preceding paragraph does not have the effect of a stay of enforcement.

Article 134(1)A claim on assets arising from causes occurring after the commencement of reorganization a (excluding one that is a common-benefit claim or secured or unsecured reorganization claim) is a post-commencement claim.

(2)With regard to a post-commencement claim, during the period after reorganization commences until the payment period specified in a reorganization plan expires (or until reorganization is closed if the end of reorganization a occurs before a ruling confirming the reorganization plan, or until payment based on the reorganization plan is completed if this occurs prior to the expiration of the period), it is not permissible to make or receive a payment or carry out other act that causes the claim to be extinguished (excluding a release).

(3)During the period prescribed in the preceding paragraph, it is not permissible to carry enforcement, provisional seizure or provisional disposition, exercise any security right or exercise any security right on whole company assets against the reorganizing company's assets, or file a petition for an assets disclosure procedure based on a post-commencement claim. The same applies to a disposition to be made by the same procedure as that for making a disposition to collect national tax arrears, based on a claim for a foreign tax subject to mutual assistance that is a post-commencement claim against the reorganizing company's assets.

Article 135(1)A secured or unsecured reorganization creditor may participate in reorganization on the basis of a secured or unsecured reorganization claim that the creditor holds.

(2)The provisions of Article 104 and Article 105 of the Bankruptcy Act applies mutatis mutandis to the exercise of rights by a secured or unsecured reorganization creditor when reorganization has commenced. In this case, in the provisions of Article 104 and Article 105 of the same Act, the phrase "commencement of a bankruptcy proceeding" is deemed to be replaced with "commencement of reorganization"; in Article 104, paragraph (1), paragraph (3), and paragraph (4), and Article 105 of the same Act, the term "bankruptcy proceeding" is deemed to be replaced with " reorganization"; the term "bankrupt" in the provisions of Article 104, paragraph (3) through paragraph (5) of the same Act is deemed to be replaced with "reorganizing company"; and in Article 104, paragraph (4) of the same Act, the term "bankruptcy creditor" is deemed to be replaced with "reorganization creditor or secured reorganization creditor".

(3)Notwithstanding the provisions of paragraph (1), in order to participate in reorganization due to a claim for a foreign tax subject to mutual assistance, a decision of implementation of mutual assistance (meaning a decision of implementation of mutual assistance prescribed in Article 11, paragraph (1) of the Act on Special Measures for the Implementation of Tax Treaties; the same applies in Article 164, paragraph (2)) will be required.

Article 136(1)A secured or unsecured reorganization creditor has a voting right for their secured or unsecured reorganization claim according to the amount specified in each of the following items for the categories stated in the respective items:

(2)Notwithstanding the provisions of the preceding paragraph, a secured or unsecured reorganization creditor does not have any voting right for a claim which falls under any of the following:

(3)Notwithstanding the provisions of paragraph (1), where the reorganizing company, at the time of commencement of the reorganization, is unable to pay its debts in full with its assets with regard to claims that take preference over consensually-subordinated reorganization claims, the holders of the consensually-subordinated reorganization claims do not have any voting right.

Article 137(1)A secured or unsecured reorganization creditor, even when they, by exercising their right against the reorganization company's assets that exists in a foreign state, has received payment of their secured or unsecured reorganization claim after a ruling to commence reorganization is made, may participate in the reorganization with regard to the amount of all secured or unsecured reorganization claims that they hold as of the time before receiving the payment.

(2)The secured or unsecured reorganization creditor referred to in the preceding paragraph may not receive payment as prescribed in a reorganization plan until any other secured or unsecured reorganization creditor with the same priority as theirs receives payment at the same proportion as they have received payment.

(3)The secured or unsecured reorganization creditor referred to in paragraph (1) may not exercise their voting right with regard to the part of the secured or unsecured reorganization claims for which they have received payment in the foreign state.

Article 138(1)A reorganization creditor that intends to participate in reorganization must file a proof of the following particulars to the court within a period for filing a proof of claims (meaning a period during which a proof of secured or unsecured reorganization claims should be filed as specified pursuant to the provisions of Article 42, paragraph (1)):

(2)A secured reorganization creditor that intends to participate in reorganization must file a proof of the following particulars to the court within a period for filing a proof of claims:

Article 139(1)If a secured or unsecured reorganization creditor was unable to file a proof of their secured or unsecured reorganization claim within the period for filing a proof of claims prescribed in paragraph (1) of the preceding Article due to grounds not attributable to them, the creditor, etc. may file a proof only within one month after the grounds cease to exist.

(2)The one-month period prescribed in the preceding paragraph may not be extended or shortened.

(3)With regard to a secured or unsecured reorganization claim arising after the expiration of the period for filing a proof of claims prescribed in paragraph (1) of the preceding Article, a proof must be filed within an inalterable period of one month after the claim arose.

(4)The filing of a proof referred to in paragraph (1) and paragraph (3) may not be made after a ruling to refer a proposed reorganization plan to a resolution is made.

(5)The provisions of paragraph (1), paragraph (2), and the preceding paragraph apply mutatis mutandis when a secured or unsecured reorganization creditor makes a change to any filed matter, which is prejudicial to the interest of other secured or unsecured reorganization creditors, due to grounds not attributable thereto.

Article 140(1)A proof of a secured or unsecured reorganization claim with regard to a claim for a severance pay of an employee of the reorganizing company will be filed after the employee's retirement.

(2)When an employee of the reorganizing company has retired after the period for reporting claims prescribed in Article 138, paragraph (1) expired and before a ruling confirming the reorganization plan is made, the employee may file a proof of a secured or unsecured reorganization claim with regard to their claim for severance pay only within an inalterable period of one month after their retirement.

(3)The provisions of the preceding two paragraphs apply mutatis mutandis to a claim for a severance pay of a director, accounting advisor, auditor, representative director, executive officer, representative executive officer, liquidator, or representative liquidator of the reorganizing company.

Article 141A person that has acquired a filed secured or unsecured reorganization claim may receive a change of the name of the holder of the filed claim even after the expiration of the period for filing a proof of claims prescribed in Article 138, paragraph (1).

Article 142A person that has any of the following claims must without delay file with the court a proof of the amount and cause of the claim and the content of the security right, and if the claim in question is a claim for a foreign tax subject to mutual assistance, a statement to that effect:

Article 143Deleted

Article 167(1)A reorganization plan must specify clauses concerning the following:

(2)Beyond the particulars specified in the first sentence of Article 72, paragraph (4), a reorganization plan may specify clauses concerning the acts stated in the items of Article 45, paragraph (1), the amendment of the articles of incorporation, business transfers, etc. (meaning business transfers, etc. prescribed in Article 468, paragraph (1) of the Companies Act; the same applies in Article 174, item (vi) and Article 213-2), the incorporation of a stock company and other particulars necessary for reorganization.

Article 168(1)The content of a reorganization plan concerning the persons holding the following types of rights will be equal between the persons that hold the same type of rights; provided, however, that this does not apply when any person that will suffer detriment has given consent or when equity will not be undermined even if the plan otherwise provides for a small secured or unsecured reorganization claim or any of the claims stated in Article 136, paragraph (2), item (i) through item (iii) or when equity will not be undermined even if any other difference is set in the handling of the persons that hold the same type of rights:

(2)In the case of a reorganization claim referred to in item (ii) of the preceding paragraph, when a priority exists with regard to the amount of claim arising within a specific period of time, the period is calculated from the time of commencement of reorganization retroactively.

(3)In a reorganization plan, a fair and equitable difference must be provided with respect to the content of the reorganization plan between persons that hold different types of rights, while taking into consideration the order of priority for the types of rights stated in the items of paragraph (1). In this case, the order of priority for those rights will be the order of those items.

(4)The provisions of the preceding paragraph do not apply to right to impose taxes or other charges (excluding a claim for a foreign tax subject to mutual assistance) or a claim for a fine or court costs arising prior to the commencement of reorganization prescribed in Article 142, item (ii).

(5)If a debt is to be assumed or the term of a debt is to be extended based on a reorganization plan, the term of the debt does not exceed the following periods:

(6)The provisions of the preceding paragraph do not apply when corporate bonds are issued pursuant to the provisions of a reorganization plan.

(7)A reorganization plan may not provide for reduction and release of debts or any other measures that would affect a claim for a fine or court costs arising prior to the commencement of the reorganization prescribed in Article 142, item (ii).

Article 169(1)When providing for any measures that may affect a right to impose taxes or other charges in a reorganization plan, consent is required from the person that has the power of collection of the claim; provided, however, that if the reorganization plan provides for a grace period for payment of not more than three years or provides for a grace period for realization of assets through measures to collect arrears with regard to the claim or if it provides for any measures that may affect any rights with regard to the claims for the following taxes and charges, it is sufficient to hear opinions from the person that has the power of collection:

(2)The person that has the power of collection may give consent as referred to in the main clause of the preceding paragraph.

(3)Notwithstanding the provisions of the preceding two paragraphs, when the reorganization plan provides for any measures that would affect rights with regard to a claim for a foreign tax subject to mutual assistance, it is sufficient to hear opinions of the person that has the power to collect the claim.

Article 170(1)Clauses for modifying the rights of the whole or part of the secured or unsecured reorganization creditors or shareholders must clearly indicate rights held by secured or unsecured reorganization creditors who filed claims and shareholders which are to be modified, and also establish the content of rights as modified; provided, however, that this does not apply to secured or unsecured reorganization claims prescribed in Article 172.

(2)If there is a right held by a secured or unsecured reorganization creditor who filed a claim or shareholder which will not be affected by a reorganization plan, the right must be clearly indicated.

Article 171(1)If a person other than the reorganizing Company owes a debt or provides security for the reorganization of the reorganizing company's business, the reorganization plan must clearly indicate the person and establish the details of the debt and security right. The same applies when providing security from the reorganizing company's assets.

(2)In order to establish the details in a reorganization plan under the provisions of the preceding paragraph, consent is required from the person that owes the debt or provides the security.

Article 172If there is a disputed secured or unsecured reorganization claim prescribed in the main clause of Article 151, paragraph (1) for which finalization proceedings have not yet been closed, a reorganization plan must establish appropriate measures for the claim, while taking into consideration the possible outcome of the finalization of the claim.

Article 173(1)The clauses stated in the following items must establish the particulars specified in the respective items:

(2)When the reorganizing company becomes a liquidating stock company at the time of a ruling confirming the reorganization plan, the clauses stated in the following items must determine the particulars specified in the respective items:

Article 174Clauses concerning the following acts must determine the particulars which would require a resolution of a shareholders meeting or any other institutional decision of a stock company in order to conduct the acts if the company were not subject to reorganization:

Article 174-2Clauses concerning the acquisition by the reorganizing company of its shares must determine the following:

Article 174-3Clauses concerning the acquisition of shares subject to cash-out issued by a reorganization company must prescribe the following:

Article 175Clauses concerning the solicitation of subscribers for shares for subscription must determine the following:

Article 176Clauses concerning the solicitation of subscribers for share options (when the share options are attached to bonds with share options, the bonds with respect to these bonds with share options will be included; the same applies below) must determine the following:

Article 177Clauses concerning the solicitation of subscribers for bonds for subscription (excluding bonds with share options; the same applies below) must prescribe the following:

Article 177-2(1)The following must be prescribed in clauses concerning the issuing of shares in exchange for the extinguishment of the whole or part of the rights of secured or unsecured reorganization creditors or shareholders:

(2)The following must be prescribed in clauses concerning the issuing of share options (when the share options are attached to bonds with share options, the bonds with respect to the bonds with share options are included; the same applies in this Article, Article 183, item (xiii) and Article 225, paragraph (5)) in exchange for the extinguishment of whole or part of the rights of secured or unsecured reorganization creditors or shareholders:

(3)Clauses concerning the issuing of bonds (excluding those with respect to bonds with share options; the same applies in this Article, Article 183, item (xiii), and Article 225, paragraph (5)) in exchange for the extinguishment of whole or part of the rights of secured or unsecured reorganization creditors or shareholders must establish the following:

Article 178Clauses concerning dissolution must determine dissolution and its scheduled time; provided, however, that this does not apply in the case of dissolution as a result of a merger.

Article 179Clauses concerning the entity conversion into a membership company must define the particulars that should be prescribed in an entity conversion plan.

Article 180(1)The following must be prescribed in clauses concerning an absorption-type merger (limited to an absorption-type merger in which the reorganizing company becomes extinct and the company that survives the absorption-type merger (referred to as the "company surviving the absorption-type merger") is a stock company; the same applies in this paragraph):

(2)The following must be prescribed in clauses concerning an absorption-type merger (limited to an absorption-type merger in which the reorganizing company becomes extinct and the company surviving the absorption-type merger is a membership company; the same applies in this paragraph):

(3)Particulars that should be prescribed in an absorption-type merger agreement must be specified in clauses concerning an absorption-type merger (limited to a merger in which the reorganizing company becomes the company surviving the absorption-type merger).

Article 181(1)The following must be prescribed in clauses concerning a consolidation-type merger (limited to a consolidation-type merger in which the reorganizing company becomes extinct and the company that is incorporated in the consolidation-type merger (referred to as the "company incorporated in the consolidation-type merger" below) is a stock company; the same applies in this paragraph):

(2)The following must be prescribed in clauses concerning a consolidation-type merger (limited to a consolidation-type merger in which the reorganizing company becomes extinct and the company incorporated in the consolidation-type merger is a membership company; the same applies in this paragraph):

Article 182Particulars that should be prescribed in an absorption-type company split agreement must be prescribed in clauses concerning an absorption-type company split.

Article 182-2Clauses concerning an incorporation-type company split must establish the particulars that should be prescribed in an incorporation-type company split plan.

Article 182-3(1)The following must be prescribed in clauses concerning a share exchange (limited to a share exchange in which the reorganizing company is the stock company that effects the share exchange (hereinafter referred to as the "wholly owned subsidiary company in share exchange") and the company that acquires all of its issued shares (hereinafter referred to as the "wholly owning parent company in share exchange") is a stock company; the same applies in this paragraph):

(2)The following must be specified in clauses concerning a share exchange (limited to a share exchange in which the reorganizing company becomes the wholly owned subsidiary company in the share exchange and the wholly owning parent company in the share exchange is a limited liability company; the same applies in this paragraph):

(3)Particulars that should be prescribed in a share exchange agreement must be prescribed in clauses concerning a share exchange (limited to the share exchanges in which the reorganizing company becomes the wholly owning parent company in the share exchange).

Article 182-4The following must be prescribed in clauses concerning a share transfer:

Article 183The following must be provided for in clauses concerning the incorporation of a stock company; provided, however, that this does not apply to the incorporation of a stock company through a consolidation-type merger, incorporation-type company split, or share transfer:

Article 184(1)A trustee, within the period specified by the court after the expiration of the period for filing a proof of claims prescribed in Article 138, paragraph (1), must prepare a proposed reorganization plan and submit it to the court.

(2)The reorganizing company, a secured or unsecured reorganization creditor who filed a claim, or a shareholder may prepare a proposed reorganization plan and submit to the court within the period specified by the court.

(3)The last day of each of the periods referred to in the preceding two paragraphs (excluding any period as extended under the provisions of the following paragraph) must be within one year from the date of the ruling to commence reorganization.

(4)If there are special circumstances, upon petition or by its own authority, the court may extend the period specified thereby pursuant to the provisions of paragraph (1) or paragraph (2).

Article 185(1)If it becomes obvious, after the commencement of reorganization, that it is difficult for the reorganizing company itself, or for any other person through the transfer of business, or the merging, split or incorporation of a stock company, to prepare a proposed reorganization plan aiming for the continuation of the reorganizing company's business, upon the petition of any of the persons prescribed in paragraph (1) or paragraph (2) of the preceding Article, the court may permit preparation of a proposed reorganization plan for the discontinuation of all of the reorganizing company's business; provided, however, that this does not apply if this will harm the common interests of creditors.

(2)The court may revoke the permission referred to in the main clause of the preceding paragraph at any time until it makes a ruling to refer the proposed reorganization plan to a resolution.

Article 186The person that has submitted a proposed reorganization plan may revise the proposed reorganization plan with permission of the court; provided, however, that this does not apply after a ruling is made to refer a proposed reorganization plan to a resolution.

Article 187In the case of a proposed reorganization plan which provides for the particulars that require permission, authorization, license, or any other disposition by an administrative agency, the court must hear opinions from the administrative agency concerned with regard to the particulars. The same applies to a proposed reorganization plan as revised under the provisions of the preceding Article.

Article 188The court must hear opinions from the labor union or relevant representative prescribed in Article 46, paragraph (3), item (iii) with regard to a proposed reorganization plan. The same applies to a proposed reorganization plan as revised under the provisions of Article 186.

Article 189(1)If a proposed reorganization plan is submitted, the court makes a ruling to refer the proposed reorganization plan to a resolution, except in a case that falls any of the following items:

(2)When making a ruling to refer to a resolution referred to in the preceding paragraph, the court must specify the means available to secured or unsecured reorganization creditors or shareholders that may exercise voting rights (referred to as "voting right holders" in this Section) for exercising their voting rights, and set a time limit for giving a notice to the court in the case of diverse exercise of a voting right under the provisions of Article 193, paragraph (2) (including cases where applied mutatis mutandis pursuant to paragraph (3) of the same Article). In this case, any of the following means must be designated as that for exercising a voting right:

(3)When it has made a ruling to refer to a resolution referred to in paragraph (1), the court must give a public notice of the time limit prescribed in the first sentence of the preceding paragraph and give a notice of the time limit and the content of the proposed reorganization plan or their outline to the persons prescribed in the main clause of Article 115, paragraph (1) (excluding those prescribed in paragraph (2) of the same Article).

(4)When it has designated either of the means stated in paragraph (2), item (ii) or item (iii) as the means of exercising a voting right, the court must give a public notice to that effect, and must give a notice to voting right holders to the effect that voting by document, etc. prescribed in item (ii) of the same paragraph will be allowed only within a period specified by the court.

(5)If the court has designated the means stated in paragraph (2), item (ii) as the means of exercising a voting right, if any of the persons stated in the items of Article 114, paragraph (1) (excluding the person that may not file a petition referred to in the first sentence of paragraph (1) of the same Article pursuant to the provisions of paragraph (2) of the same Article) has filed, within the period referred to in the preceding paragraph, a petition for convocation of a stakeholders meeting aimed for adopting a resolution on a proposed reorganization plan, the court must rescind the designation of the means of exercising a voting right, and designate the means stated in paragraph (2), item (i) or item (iii) instead.

Article 190(1)A bondholder that has a corporate bond which is a secured or unsecured reorganization claim, if there is any bond administrator or trustee company prescribed in Article 43, paragraph (1), item (v) for the corporate bond, may exercise voting rights based on the corporate bond, only in a case that falls any of the following items:

(2)A person that has acquired a corporate bond which is a secured or unsecured reorganization claim and for which an offer prescribed in item (ii) of the preceding paragraph is made may receive a change of the name of the potential voter.

(3)A bondholder referred to in paragraph (1) (limited to one that falls under any of the items of the same paragraph), notwithstanding the provisions of the same paragraph, may not exercise their voting right for a resolution of the proposed reorganization plan when, with regard to the exercise of a voting right for a resolution on a proposed reorganization plan based on a corporate bond which is a secured or unsecured reorganization claim , a resolution at a bondholders meeting referred to in Article 706, paragraph (1) of the Companies Act is adopted or there exists a provisions referred to in the proviso to Article 706, paragraph (1) of the same Act.

Article 191(1)When the court designates either of the means stated in Article 189, paragraph (2), item (i) or item (iii) as the that of exercising a voting right, a trustee, a secured or unsecured reorganization creditor who filed a claim, or a shareholder may make an objection on the date of a stakeholders meeting with regard to the voting rights of secured or unsecured reorganization creditors who filed claims or shareholders; provided, however, that this does not apply to a voting right held by a secured or unsecured reorganization creditor who filed a claim the amount of which has been determined pursuant to the provisions of Article 150, paragraph (1).

(2)In the case prescribed in the main clause of the preceding paragraph, voting right holders may exercise their voting rights in accordance with the amount or number specified in each of the following items for the categories stated in the respective items:

(3)Upon the petition of an interested person or by its own authority, the court may change the ruling made under the provisions of item (iv) of the preceding paragraph at any time.

Article 192(1)When the court designates the means stated in Article 189, paragraph (2), item (ii) as that for exercising a voting right, voting right holders may exercise their voting rights in accordance with the amount or number specified in each of the following items for the categories stated in the respective items:

(2)Upon the petition of an interested person or by its own authority, the court may change the ruling made under item (ii) of the preceding paragraph at any time.

Article 193(1)Voting right holders may exercise their voting rights by proxy.

(2)Each voting right holder may exercise their voting right diversely. In this case, they must give a notice to the court in writing to that effect by the time limit prescribed in the first sentence of Article 189, paragraph (2).

(3)The provisions of the preceding paragraph apply mutatis mutandis when the proxy prescribed in paragraph (1) diversely exercises voting rights vested therein (if the proxy has their own voting right, the voting right is included).

Article 194(1)The court, if finding it appropriate, upon making a ruling to refer a proposed reorganization plan to a resolution, may designate a certain day (referred to as the "record date" in this Article) and determine the secured or unsecured reorganization creditors or shareholders recorded in the schedule of reorganization creditors or schedule of secured reorganization creditors or the shareholder registry as of the record date as voting right holders.

(2)The court must give a public notice of the record date. In this case, the record date will be on or after the day on which two weeks elapsed since the date of public notice.

Article 195Persons that hold rights that will not be affected by a reorganization plan or rights that are protected pursuant to the provisions of Article 200, paragraph (2) may not exercise their voting rights.

Article 196(1)A resolution on a proposed reorganization plan will be adopted separately by the persons that hold the types of rights stated in the items of Article 168, paragraph (1) or by the persons that hold the types of rights specified under the provisions of the following paragraph.

(2)The court, if finding it appropriate, may categorize two or more types of rights stated in the items of Article 168, paragraph (1) as one type of right, or categorize each of the types of rights stated in those items into two or more types of rights; provided, however, that reorganization claims, secured reorganization claims, or shares must be treated as separate types of rights.

(3)The court may modify or set aside the ruling referred to in the main clause of the preceding paragraph until it makes a ruling to refer the proposed reorganization plan to a resolution.

(4)If a ruling is made under the provisions of the preceding two paragraphs, the written judgment must be served upon the voting right holders; provided, that this does not apply where the ruling is rendered on the date of a stakeholders meeting.

(5)In order to approve a proposed reorganization plan, consent is required from the persons specified in the following items for the categories stated in the respective items for each of the types of rights prescribed in paragraph (1)

Article 197When either of the means stated in Article 189, paragraph (2), item (i) or item (iii) is designated as that for exercising a voting right, the person that has submitted a proposed reorganization plan, with permission of the court, may modify the proposed reorganization plan at a stakeholders meeting as long as it does not adversely affect secured or unsecured reorganization creditors and shareholders.

Article 198(1)When either of the means stated in Article 189, paragraph (2), item (i) or item (iii) has been designated as those for exercising a voting right on a proposed reorganization plan, and the proposed reorganization plan has not been approved, if consents for the continuation of the stakeholders meeting are obtained from the persons specified in the following items for the categories stated in the respective items for each of the types of rights prescribed in Article 196, paragraph (1), the court, upon the petition of a trustee, the reorganizing company or a voting right holder or by its own authority, must designate and render the further date; provided, however, that this does not apply when it is obvious that the proposed reorganization plan is unlikely to be approved on the further date:

(2)In the case referred to in the main clause of the preceding paragraph, approval of a proposed reorganization plan referred to in the main clause of the same paragraph must be made within two months from the date of the first stakeholders meeting to which the proposed reorganization plan has been referred for a resolution.

(3)The court, if finding it necessary, upon the petition of the person who has submitted a proposed reorganization plan or by its own authority, may extend the period referred to in the preceding paragraph; provided, however, that an extension must not exceed one month.

Article 199(1)If a proposed reorganization plan is approved, the court must make a ruling confirming or disconfirming the reorganization plan.

(2)The court must make a ruling confirming the reorganization plan if all of the following requirements are met:

(3)Even if the reorganization contravenes provisions of laws and regulations or the Rules of the Supreme Court, the court may make a ruling confirming the reorganization plan if finding it inappropriate not to confirm the reorganization plan, while taking into consideration the degree of the contravention, the current status of the reorganizing company and any other circumstances concerned.

(4)The court must make a ruling disconfirming the reorganization plan except where it makes a ruling confirming the reorganization plan pursuant to the provisions of the preceding two paragraphs or paragraph (1) of the following Article.

(5)The persons prescribed in the main clause of Article 115, paragraph (1) and the labor union or relevant representative prescribed in Article 46, paragraph (3), item (iii) may state their opinions with regard to whether or not the reorganization plan should be confirmed.

(6)If a ruling confirming or disconfirming the reorganization plan is made, a public notice must be given with regard to the main text of the order and the outline of the reasons attached thereto, and the reorganization plan or their outline.

(7)In the case prescribed in the preceding paragraphs, the labor union or relevant representative prescribed in Article 46, paragraph (3), item (iii) must be given a notice to the effect that the ruling referred to in the preceding paragraph is made.

Article 200(1)Even if a proposed reorganization plan is not approved due to the fact that consent has not been obtained as required under Article 196, paragraph (5) among holders of any of the types of rights prescribed in paragraph (1) of the same Article, the court may make a ruling confirming the reorganization plan by modifying the proposed reorganization plan and specifying, in the interest of the holders of the type of rights among whom consent has not been obtained, a clause to protect the rights by any of the following means:

(2)If it is obvious that for a proposed reorganization plan, consent will not be obtained as required under Article 196, paragraph (5) among holders of any of the types of rights prescribed in paragraph (1) of the same Article, the court, upon the petition of the person that is to prepare a proposed reorganization plan, may permit that a proposed reorganization plan will be prepared by specifying, in advance, in the interest of the holders of the type of rights among which consent will not be obtained, a clause to protect the rights by any of the methods stated in the items of the preceding paragraph.

(3)If the petition referred to in the preceding paragraph is filed, the court must hear opinions from the petitioner and at least one of the holders of the type of rights among whom consent obviously will not be obtained.

Article 201Reorganization plans come into effect as of the time when a ruling confirming the relevant plan is made.

Article 202(1)An immediate appeal may be filed against a ruling confirming or disconfirming a reorganization plan.

(2)Notwithstanding the provisions of the preceding paragraph, in the cases stated in the following items, the persons specified in the respective items may not file an immediate appeal except on the grounds that the content of the reorganization plan is in violation of Article 168, paragraph (1), item (iv) through item (vi):

(3)A secured or unsecured reorganization creditor or shareholder that held no voting right, when filing an immediate appeal referred to in paragraph (1), must make a prima facie showing to the effect that they are a secured or unsecured reorganization creditor or shareholder.

(4)The immediate appeal referred to in paragraph (1) does not affect the implementation of the reorganization plan; provided, however, that if a prima facie showing is made with regard to the obvious circumstances under which the ruling referred to in the same paragraph should be set aside as well as the urgent necessity to avoid any damage which may be caused by the implementation of the reorganization plan to the extent that compensation cannot be made, the appellate court or the court that made the order confirming the reorganization plan, upon the petition of the appellant, may stay the implementation of whole or part of the reorganization plan or make any other necessary disposition, while requiring or not requiring the provision of security, until a ruling is made on the immediate appeal.

(5)The provisions of the preceding two paragraphs apply mutatis mutandis to an appeal under the provisions of Article 336 of the Code of Civil Procedure and to a petition for permission for appeal under the provisions of Article 337 of the Code, both provisions applied mutatis mutandis pursuant to Article 13, which are filed against a judicial decision on the immediate appeal referred to in paragraph (1).

Article 203(1)A reorganization plan will be effective in the interest of or against the following persons:

(2)A reorganization plan does not affect any rights held by secured or unsecured reorganization creditors against the reorganizing company's guarantor or any other person that owes debts jointly with the reorganizing company, and any security provided by persons other than the reorganizing company in the interest of secured or unsecured reorganization creditors.

Article 204(1)When a ruling of confirmation of a reorganization plan is made, the reorganizing company will be discharged from its liabilities for all secured or unsecured reorganization claims, except for the following rights, and all of the shareholders' rights and security rights existing on the reorganizing company's assets will be extinguished:

(2)If a ruling of confirmation of the reorganization plan is made, with regard to the claims stated in item (iii) and item (iv) of the preceding paragraph, it is not permissible to make or receive payment or conduct any other act to cause the claim to be extinguished (excluding a release) until the payment period specified in the reorganization plan expires (or until payment based on the reorganization plan is completed if this occurs prior to the expiration of the period).

(3)Notwithstanding the provisions of paragraph (1), the effect of discharge and extinguishment of security rights under the provisions of the same paragraph with regard to a claim for a foreign tax subject to mutual assistance may be asserted only in relation to the mutual assistance under the provisions of Article 11, paragraph (1) of the Act on Special Provisions for the Enforcement of Tax Treaties.

Article 205(1)If a ruling confirming the reorganization plan is made, the rights of secured or unsecured reorganization creditors who filed claims and those of shareholders will be modified as prescribed in the reorganization plan.

(2)Holders of filed secured or unsecured reorganization claims, only where their claims have been determined, may exercise their rights approved pursuant to the provisions of the reorganization plan.

(3)If rights of shareholders are approved pursuant to the provisions of the reorganization plan, shareholders that did not participate in the reorganization may also exercise their rights approved pursuant to the provisions of the reorganization plan.

(4)The provisions of Article 151 through Article 153 of the Companies Act apply mutatis mutandis to money or assets to be received by shareholders as a result of the modification of rights under paragraph (1).

(5)Notwithstanding the provisions of paragraph (1), the effect of modification of rights under the provisions of the same paragraph with regard to a claim for a foreign tax subject to mutual assistance may be asserted only in relation to the mutual assistance under the provisions of Article 11, paragraph (1) of the Act on Special Provisions for the Enforcement of Tax Treaties.

Article 206(1)When a ruling confirming the reorganization plan becomes final and binding, a court clerk must make an entry of the clauses of the reorganization plan in the schedule of reorganization creditors and the schedule of secured or unsecured reorganization creditors.

(2)In the case referred to in the preceding paragraph, with regard to the rights approved pursuant to the provisions of the reorganization plan based on secured or unsecured reorganization claims, the relevant entries in the schedule of reorganization creditors or the schedule of secured reorganization creditors have the same effect as a final and binding judgment against the reorganizing company, the membership company stated in Article 203, paragraph (1), item (iv), the company stated in item (v) of the same paragraph, secured or unsecured reorganization creditors, the reorganizing company's shareholders, and any person that assumes a debt or provides security for the reorganization of the reorganizing company's business.

Article 207If a ruling confirming the reorganization plan is made, the prescription for a claim a right to impose taxes or other charges (excluding a claim for a foreign tax subject to mutual assistance) does not run during the grace period for payment of the claim or for realization of assets through the disposition to collect arrears pursuant to the provisions of Article 169, paragraph (1).

Article 208If a ruling confirming the reorganization plan is made, the bankruptcy proceedings, the rehabilitation proceedings (including the bankruptcy proceedings, the procedure for enforcement or related action based on a rehabilitation claim prescribed in Article 26, paragraph (1), item (ii) of the Civil Rehabilitation Act and the disposition to collect foreign tax arrears based on a rehabilitation claim prescribed in item (v) of the same paragraph, which have been stayed during the rehabilitation proceedings pursuant to the provisions of Article 39, paragraph (1) of the same Act), the procedure for enforcement or related action prescribed in Article 24, paragraph (1), item (ii), the procedure for the exercise of the security right on whole company assets, the disposition to collect foreign tax arrears prescribed in item (vi) of the same paragraph, and the assets disclosure procedure, all of which are stayed pursuant to the provisions of Article 50, paragraph (1), cease to be effective; provided, however, that this does not apply to the proceedings or dispositions continued pursuant to the provisions of Article 50, paragraph (5).

Article 209(1)If a ruling confirming the reorganization plan is made, a trustee must promptly commence the implementation of the reorganization plan or the supervision of the management of the reorganizing company's business and the administration and disposition of the company's assets.

(2)A trustee supervises the implementation of the reorganization plan by the company stated in Article 203, paragraph (1), item (v).

(3)A trustee may request any of directors at incorporation, auditors at incorporation, directors, accounting advisors, auditors, executive officers, financial auditors, partners who execute the business, liquidators, and employees and other workers of the company prescribed in the preceding paragraph, and persons who held those posts, to report on the status of the company's business and assets, or may inspect the company's books, documents and any other objects.

(4)The court, if finding it necessary in order to ensure the implementation of the reorganization plan, may order a trustee (or the reorganizing company if the organs of the reorganizing company have restored their powers pursuant to the provisions of the first sentence of Article 72, paragraph (4)) or any person that assumes a debt or provides security for the reorganization of the reorganizing company's business, to provide reasonable security in the interest of the following persons:

(5)The provisions of Article 76, Article 77, Article 79 and Article 80 of the Code of Civil Procedure apply mutatis mutandis to the security referred to in the preceding paragraph.

Article 210(1)In the course of the implementation of a reorganization plan, notwithstanding the provisions of the Companies Act and other laws and regulations or the articles of incorporation, neither a resolution of the shareholders meeting nor a decision of any other organ of the reorganizing company or the stock company to be incorporated under the clauses prescribed in Article 183 will be required.

(2)In the course of the implementation of a reorganization plan, notwithstanding the provisions of the Companies Act and other laws and regulations, no shareholders or holders of share options of the reorganizing company or the stock company to be incorporated under the clauses prescribed in Article 183 may demand that the reorganizing company or the stock company to be incorporated under the clauses prescribed in the same Article purchases their shares or share options.

(3)In the course of the implementation of a reorganization plan, notwithstanding the provisions of Article 828, Article 829 and Article 846-2 of the Companies Act, no shareholders, etc. (meaning shareholders, etc. prescribed in Article 828, paragraph (2), item (i) of the same Act), holders of share options, bankruptcy trustee or creditors of the reorganizing company or the stock company to be incorporated under the clauses prescribed in Article 183 may file an action seeking invalidation of any of the acts stated in the items of Article 828, paragraph (1) of the same Act or an action for declaratory judgment of absence of any of the acts stated in the items of Article 829 of the same Act or an action seeking invalidation of the acquisition of the shares subject to the cash-out prescribed in Article 846-2, paragraph (2) of that Act.

Article 211(1)If a reorganization plan, pursuant to the provisions of Article 173, provides for the names of the directors(if the reorganization company is a company with supervisory committee, directors who are supervisory committee members or other directors; the same applies in this paragraph and the following paragraph), accounting advisors, auditors, representative directors, members of respective committees, executive officers, representative executive officers, financial auditors, liquidators, or representative liquidators, these persons, at the time of the order confirming the reorganization plan, become directors, accounting advisors, auditors, representative directors, members of respective committees, executive officers, representative executive officers, financial auditors, liquidators, or representative liquidators, respectively.

(2)If a reorganization plan, pursuant to the provisions of Article 173, provides for the methods for election of directors, accounting advisors, auditors, executive officers, financial auditors, or liquidators, the election of these persons will be carried out by the means prescribed in the reorganization plan.

(3)If a reorganization plan, pursuant to the provisions of Article 173, paragraph (1), item (ii) through item (iv) or item (viii) or paragraph (2), item (ii), provides for the means for appointment of representative directors, members of respective committees, representative executive officers or representative liquidators, the appointment of these persons will be carried out by the means prescribed in the reorganization plan.

(4)The former directors, accounting advisors, auditors, executive officers, financial auditors, or liquidators of the reorganizing company resign at the time of the order confirming the reorganization plan; provided, however, that this does not preclude these persons from continuing to serve as directors, accounting advisors, auditors, executive officers, financial auditors, or liquidators pursuant to the provisions of paragraph (1).

(5)The provisions of the preceding paragraph apply mutatis mutandis to the former representative directors, members of respective committees, representative executive officers, or representative liquidators of the reorganizing company.

(6)The terms of office of the persons elected as directors, accounting advisors, auditors, executive officers, financial auditors, or liquidators pursuant to the provisions of paragraph (1) through paragraph (3) and the terms of office of the persons appointed as representative directors, members of respective committees, representative executive officers, or representative liquidators pursuant to these provisions will be set as prescribed in the reorganization plan.

Article 211-2Where a reorganization plan, pursuant to the provision of Article 174, item (i), provides that the reorganization company will consolidate its shares, the provisions of Article 182-2 and Article 182-3 of the Companies Act do not apply.

Article 212If a reorganization plan, pursuant to the provisions of Article 174, item (iii), establishes that the amount of the reorganizing company's stated capital or reserves will be reduced, the provisions of Article 449 and Article 740 of the Companies Act do not apply.

Article 213If a reorganization plan, pursuant to the provisions of Article 174, item (v), provides that the reorganizing company's articles of incorporation will be amended, the amendment of the articles of incorporation will become effective at the time of the order confirming the reorganization plan; provided, however, that if the reorganization plan otherwise provides for the time of the amendment taking effect, the provisions prevail.

Article 213-2If a reorganization plan, pursuant to the provision of Article 174, item (vi), provides that the transferring of business (limited to the acts stated in Article 467, paragraph (1), item (i) or item (ii) of the Companies Act) will be conducted, the provisions of Article 23-2 of that Act and of Article 18-2 of the Commercial Code as applied pursuant to the provision of Article 24, paragraph (1) of that Act after deemed replacement do not apply to creditors of the reorganization company.

Article 214If a reorganization plan, pursuant to the provisions of Article 174-2, provides that the reorganizing company will acquire its shares, the reorganizing company acquires the shares referred to in item (i) of the same Article on the day referred to in item (ii) of the same Article.

Article 214-2Where a reorganization plan, pursuant to the provisions of Article 174-3, provides that the special controlling shareholder of the reorganization company will acquire the shares subject to the cash-out involved in the demand for share cash-out, the provisions of Article 179-5, Article 179-7 and Article 179-8 of the Companies Act do not apply.

Article 215(1)If a reorganization plan, pursuant to the provisions of Article 175, provides that the reorganizing company will solicit subscribers for shares for subscription, the reorganizing company may issue shares for subscription without granting entitlement to the allotment of shares for subscription referred to in Article 202, paragraph (1), item (i) of the Companies Act to shareholders, even when there are the provisions in the articles of incorporation that shareholders will be granted the entitlement.

(2)If a reorganization plan, pursuant to the provisions of Article 175, item (iii), provides that secured or unsecured reorganization creditors or shareholders will be granted entitlement to the allotment of shares for subscription referred to in the same item, the reorganizing company must give a notice of the following particulars to these persons, and if bearer share option certificates or bearer bond certificates are issued for the secured or unsecured reorganization claims held by those entitled secured or unsecured reorganization creditors or the provisions of Chapter IV of the Act on Book-Entry Transfer of Corporate Bonds and Shares (Act No. 75 of 2001) (including cases where applied mutatis mutandis pursuant to the same Act and other laws and regulations) apply to the secured or unsecured reorganization claims, the reorganizing company must also give a public notice of the following particulars:

(3)The notice or public notice given under the provisions of the preceding paragraph must be given two weeks prior to the due date referred to in item (ii) of the paragraph.

(4)Persons that have entitlement to the allotment of shares for subscription referred to in Article 175, item (iii) lose their entitlement if, despite the notice or public notice given by the reorganizing company under the provisions of paragraph (2), they have not applied for subscription for shares for subscription by the due date referred to in item (ii) of the same paragraph.

(5)In the case prescribed in paragraph (2), if the number of the shares for subscription to be allotted to the secured or unsecured reorganization creditors or shareholders that have entitlement to the allotment of shares for subscription referred to in Article 175, item (iii) includes a fractional share, that fractional share is to be disregarded

(6)In the case prescribed in paragraph (1), the provisions of Article 199, item (v), Article 207, Article 210, and Part II, Chapter II, Section 8, Subsection 6 of the Companies Act do not apply.

Article 216(1)The provisions of paragraph (1) of the preceding Article apply mutatis mutandis when there are provisions in the articles of incorporation that shareholders will be granted entitlement to the allotment of share options referred to in Article 241, paragraph (1), item (i) of the Companies Act.

(2)If a reorganization plan, pursuant to the provisions of Article 176, item (iii), provides that secured or unsecured reorganization creditors or shareholders will be granted entitlement to the allotment of share options referred to in the same item, the reorganizing company must give a notice of the following particulars to these persons, and if bearer share option certificates or bearer bond certificates are issued for the secured or unsecured reorganization claims held by those entitled secured or unsecured reorganization creditors or the provisions of Chapter IV of the Act on Book-Entry Transfer of Corporate Bonds and Shares (including cases where applied mutatis mutandis pursuant to the Act and other laws and regulations) apply to the secured or unsecured reorganization claims, the reorganizing company must also give a public notice of the following particulars:

(3)The notice or public notice given under the provisions of the preceding paragraph must be given two weeks prior to the due date referred to in item (ii) of the preceding paragraph.

(4)Persons that have entitlement to the allotment of share options referred to in Article 176, item (iii) lose their entitlement if, despite the notice or public notice given by the reorganizing company under the provisions of paragraph (2), they have not applied for subscription for share options by the due date referred to in item (ii) of the same paragraph.

(5)In the case prescribed in paragraph (2), if the number of the share options to be allotted to the secured or unsecured reorganization creditors or shareholders that have entitlement to the allotment of share options referred to in Article 176, item (iii) includes a fractional share, that fractional share is to be disregarded.

(6)If a reorganization plan, pursuant to the provisions of Article 176, provides that the reorganizing company will solicit subscribers for share options, the provisions of Article 238, paragraph (5), Article 247, Article 285, paragraph (1), item (i) and item (ii), Article 286, Article 286-2, paragraph (1), item (i) and Article 286-3 of the Companies Act do not apply.

(7)In the case prescribed in the preceding paragraph, when share options, for which the particulars stated in Article 236, paragraph (1), item (iii) of the Companies Act are prescribed, are exercised prior to the end of a reorganization, the provisions of Article 284 of the Act do not apply.

Article 217(1)If a reorganization plan, pursuant to the provisions of Article 177, item (iv), provides that secured or unsecured reorganization creditors or shareholders will be granted entitlement to the allotment of bonds for subscription referred to in the same item, the reorganizing company must give a notice of the following particulars to these persons, and if bearer share option certificates or bear bond certificates are issued for the secured or unsecured reorganization claims held by those entitled secured or unsecured reorganization creditors or the provisions of Chapter IV of the Act on Book-Entry Transfer of Corporate Bonds and Shares (including cases where applied mutatis mutandis pursuant to the same Act and other laws and regulations) apply to the secured or unsecured reorganization claims, the reorganizing company must also give a public notice of the following particulars:

(2)The notice or public notice given under the provisions of the preceding paragraph must be given two weeks prior to the due date referred to in item (ii) of the preceding paragraph.

(3)Persons that have entitlement to the allotment of bonds for subscription referred to in Article 177, item (iv) lose their entitlement if, despite the notice or public notice given by the reorganizing company under the provisions of paragraph (1), they have not applied for subscription for bonds for subscription by the due date referred to in item (ii) of the same paragraph.

(4)In the case prescribed in paragraph (1), if the number of the bonds to be allotted to the secured or unsecured reorganization creditors or shareholders that have entitlement to the allotment of bonds for subscription referred to in Article 177, item (iv) includes a fractional share, that fractional share is to be disregarded.

Article 217-2(1)If a reorganization plan, pursuant to the provisions of Article 177-2, paragraph (1), provides that shares will be issued in exchange for the extinguishment of whole or part of the rights of secured or unsecured reorganization creditors or shareholders, secured or unsecured reorganization creditors or shareholders, at the time of the order confirming the reorganization plan, become shareholders stated in item (iii) of the same paragraph pursuant to the provisions on the particulars referred to in the same item.

(2)If a reorganization plan, pursuant to the provisions of Article 177-2, paragraph (2), provides that share options will be issued in exchange for the extinguishment of whole or part of the rights of secured or unsecured reorganization creditors or shareholders, secured or unsecured reorganization creditors or shareholders, at the time of the order confirming the reorganization plan, become subscribers for share options referred to in item (vi) of the same paragraph (if the share options to be issued are attached to bonds with share options, holders of bonds with respect to the bonds with share options and holders of the share options attached to the bonds with share options) pursuant to the provisions on the particulars referred to in the same item.

(3)If a reorganization plan, pursuant to the provisions of Article 177-2, paragraph (3), provides that bonds will be issued in exchange for the extinguishment of whole or part of the rights of secured or unsecured reorganization creditors or shareholders, secured or unsecured reorganization creditors or shareholders, at the time of the order confirming the reorganization plan, become bondholders of the bonds referred to in item (vii) of the same paragraph pursuant to the provisions on the particulars stated in the same item.

Article 218If a reorganization plan, pursuant to the provisions of the main clause of Article 178, provides that the reorganizing company will be dissolved, the reorganizing company will be dissolved at the scheduled time specified in the reorganization plan.

Article 219If a reorganization plan, pursuant to the provisions of Article 179, provides that the reorganizing company will effect an entity conversion, the provisions of Article 740, Article 775, and Article 779 of the Companies Act do not apply.

Article 220(1)If a reorganization plan, pursuant to the provisions of Article 180, paragraph (1), provides that the reorganizing company will effect an absorption-type merger prescribed in the same paragraph, in the cases stated in the following items, secured or unsecured reorganization creditors will become the persons specified in the respective items on the day on which the absorption-type merger becomes effective (referred to as the "effective date" in this Article) pursuant to the provisions on the particulars stated in item (iii) of the same paragraph:

(2)In the case prescribed in the preceding paragraph, the provisions of Article 740, Article 782, Article 784-2 and Article 789 of the Companies Act do not apply to the reorganizing company.

(3)If a reorganization plan, pursuant to the provisions of Article 180, paragraph (2), provides that the reorganizing company will effect an absorption-type merger prescribed in the same paragraph, if there are provisions on the particulars stated in item (ii) of the same paragraph, secured or unsecured reorganization creditors will become partners of the company surviving the absorption-type merger on the effective date pursuant to the provisions on the particulars stated in the same item. In this case, the company surviving the absorption-type merger is deemed to have amended its articles of incorporation with regard to the partners referred to in the same item.

(4)If a reorganization plan, pursuant to the provisions of Article 180, paragraph (2), provides that the reorganization company will effect an absorption-type merger prescribed in the same paragraph, if there are provisions on the particulars stated in item (iii), (a) of the same paragraph, secured or unsecured reorganization creditors will become bondholders of the bonds referred to in item (iii), (a) of the same paragraph on the effective date pursuant to the provisions on the particulars stated in item (iv) of the same paragraph.

(5)If a reorganization plan, pursuant to the provisions of Article 180, paragraph (2), provides that the reorganizing company will effect an absorption-type merger prescribed in the same paragraph, the provisions of Article 740, Article 782, Article 784-2 and Article 789 of the Companies Act do not apply to the reorganizing company.

(6)If a reorganization plan, pursuant to the provisions of Article 180, paragraph (3), provides that the reorganizing company will effect an absorption-type merger prescribed in the same paragraph, the provisions of Article 740, Article 794, Article 796-2 and Article 799 of the Companies Act do not apply to the reorganizing company.

Article 221(1)If a reorganization plan, pursuant to the provisions of Article 181, paragraph (1), provides that the reorganizing company will effect a consolidation-type merger prescribed in the same paragraph, in the cases stated in the following items, secured or unsecured reorganization creditors will become the persons specified in the respective items on the date of incorporation of the company incorporated in the consolidation-type merger pursuant to the provisions on the particulars stated in item (iii) of the same paragraph:

(2)In the case prescribed in the preceding paragraph, the provisions of Article 740, Article 803, Article 805-2 and Article 810 of the Companies Act do not apply to the reorganizing company.

(3)If a reorganization plan, pursuant to the provisions of Article 181, paragraph (2), provides that the reorganizing company will effect a consolidation-type merger prescribed in the same paragraph, if there are provisions on the particulars stated in item (ii) of the same paragraph, secured or unsecured reorganization creditors will become partners of the company incorporated in the consolidation-type merger on the date of incorporation of the company pursuant to the provisions on the particulars stated in the same item.

(4)If a reorganization plan, pursuant to the provisions of Article 181, paragraph (2), provides that the reorganizing company will effect a consolidation-type merger prescribed in the same paragraph, if there are provisions on the particulars stated in item (iii) of the same paragraph, secured or unsecured reorganization creditors will become bondholders of the bonds referred to in the same item on the date of incorporation of the company incorporated in the consolidation-type merger pursuant to the provisions on the particulars stated in item (iv) of the same paragraph.

(5)If a reorganization plan, pursuant to the provisions of Article 181, paragraph (2), provides that the reorganizing company will effect a consolidation-type merger prescribed in the same paragraph, the provisions of Article 740, Article 803, Article 805-2 and Article 810 of the Companies Act do not apply to the reorganizing company.

Article 222(1)If a reorganization plan, pursuant to the provisions of Article 182, provides that the reorganizing company will effect an absorption-type company split (limited to a split in which the reorganizing company becomes the company effecting the absorption-type company split), the provisions of Article 740, Article 782, Article 784-2 and Article 789 of the Companies Act do not apply to the reorganizing company.

(2)In the case prescribed in the preceding paragraph, the provisions of Article 759, paragraph (2) through paragraph (4) and Article 761, paragraph (2) through paragraph (4) of the Companies Act do not apply to creditors of the reorganization company.

(3)If a reorganization plan, pursuant to the provisions of Article 182, provides that the reorganizing company will effect an absorption-type company split (limited to a split in which the reorganizing company becomes the company succeeding to the whole or part of the rights and obligations held by the company effecting the absorption-type company split in connection with its business by transfer from the company), the provisions of Article 740, Article 794, Article 796-2 and Article 799 of the Companies Act do not apply to the reorganizing company.

Article 223(1)If a reorganization plan, pursuant to the provisions of Article 182-2, provides that the reorganizing company will effect an incorporation-type company split, the provisions of Article 740, Article 803, Article 805-2 and Article 810 of the Companies Act do not apply to the reorganization company.

(2)In the case prescribed in the preceding paragraph, the provisions of Article 764 paragraph (2) through paragraph (4) and Article 766, paragraph (2) through paragraph (4) of the Companies Act do not apply to creditors of the reorganizing company.

Article 224(1)If a reorganization plan, pursuant to the provisions of Article 182-3, paragraph (1), provides that the reorganizing company will effect a share exchange prescribed in the same paragraph, in the cases stated in the following items, secured or unsecured reorganization creditors will become the persons specified in the respective items on the day on which the share exchange becomes effective (referred to as the "effective date" in this Article) pursuant to the provisions on the particulars stated in item (iii) of the same paragraph:

(2)In the case prescribed in the preceding paragraph, the provisions of Article 740, Article 782, Article 784-2 and Article 789 of the Companies Act do not apply to the reorganizing company.

(3)If a reorganization plan, pursuant to the provisions of Article 182-3, paragraph (2), provides that the reorganizing company will effect a share exchange prescribed in the same paragraph, if there are provisions on the particulars stated in item (ii) of the same paragraph, secured or unsecured reorganization creditors will become partners of the wholly owning parent company in the share exchange on the effective date pursuant to the provisions on the particulars stated in the same item. In this case, the wholly owning parent company in the share exchange is deemed to have amended its articles of incorporation with regard to the partners referred to in the same item.

(4)If a reorganization plan, pursuant to the provisions of Article 182-3, paragraph (2), provides that the reorganizing company will effect a share exchange prescribed in the same paragraph, if there are provisions on the particulars stated in item (iii),(a) of the same paragraph, secured or unsecured reorganization creditors will become bondholders of the bonds referred to in item (iii),(a) on the effective date pursuant to the provisions on the particulars stated in item (iv) of the same paragraph.

(5)If a reorganization plan, pursuant to the provisions of Article 182-3, paragraph (2), provides that the reorganization company will effect a share exchange prescribed in the same paragraph, the provisions of Article 740, Article 782, Article 784-2 and Article 789 of the Companies Act do not apply to the reorganizing company.

(6)If a reorganization plan, pursuant to the provisions of Article 182-3, paragraph (3), provides that the reorganizing company will effect a share exchange prescribed in the same paragraph, the provisions of Article 740, Article 794, Article 796-2 and Article 799 of the Companies Act do not apply to the reorganizing company.

Article 224-2(1)If a reorganization plan, pursuant to the provisions of Article 182-4, provides that the reorganizing company will effect a share transfer, in the cases stated in the following items, secured or unsecured reorganization creditors will become the persons specified in the respective items on the date of incorporation of the wholly-owning parent company in the share transfer pursuant to the provisions on the particulars stated in item (iii) of the same Article:

(2)In the case prescribed in the preceding paragraph, the provisions of Article 740, Article 803, Article 805-2 and Article 810 of the Companies Act do not apply to the reorganizing company.

Article 225(1)If a reorganization plan, pursuant to the provisions of the main clause of Article 183, provides that a stock company will be incorporated, a trustee performs the duties of the incorporators of the stock company (referred to as the "new company" in this Article).

(2)In the case prescribed in the preceding paragraph, the articles of incorporation of the new company are not effective unless certified by the court.

(3)In the case prescribed in paragraph (1), a resolution may be adopted at the organizational meeting of the new company as long as its content is not contrary to the purport of the reorganization plan.

(4)In the case prescribed in paragraph (1), when the incorporation of the new company has failed, the reorganization company is responsible for the acts conducted by a trustee for the incorporation of the new company pursuant to the provisions of the same paragraph, and bears expenses incurred for the incorporation of the new company.

(5)The provisions of Article 211, paragraph (1) through paragraph (3) apply mutatis mutandis to the election or appointment of directors at incorporation, etc. in the case of the incorporation of the new company; the provisions of Article 211, paragraph (6) apply mutatis mutandis to the terms of office of the new company's directors if the directors at incorporation, etc. of the new company become the new company's directors after the incorporation of the new company; the provisions of Article 215, paragraph (2) through paragraph (5) apply mutatis mutandis where secured or unsecured reorganization creditors or shareholders will be granted entitlement to the allotment of shares solicited at incorporation of the new company referred to in Article 183, item (v); the provisions of Article 216 and Article 217 apply mutatis mutandis to the solicitation of subscribers for share options or bonds for subscription of the new company; and the provisions of Article 217-2 apply mutatis mutandis to the issue of shares issued at incorporation, share options or bonds of the new company in exchange for the extinguishment of rights of secured or unsecured reorganization creditors or shareholders.

(6)In the case prescribed in paragraph (1), the following provisions of the Companies Act do not apply: Article 25, paragraph (1), item (i) and paragraph (2), Article 26, paragraph (2), Article 27, item (v), Article 30, Part II, Chapter I, Section 3 (excluding Article 37, paragraph (3)), Section 4 (excluding Article 39), Section 5 and Section 6, Article 50, Article 51, Chapter I, Section 8, Article 58, Article 59, paragraph (1), item (i) (limited to the part related to the name of the notary), item (ii) (limited to the part related to the particulars stated in Article 27, item (v) and the items of Article 32, paragraph (1)) and item (iii), Article 65, paragraph (1), Article 88 through Article 90, Article 93, and Article 94 (limited to parts related to the particulars stated in Article 93, paragraph (1), item (i) and item (ii)), Article 102-2 and Article 103.

Article 226(1)A person who was any of the reorganizing company's directors, etc. or the company's employees prescribed in Article 204, paragraph (1), item (ii) as of the time after the commencement of reorganization, and then separated from employment at the reorganizing company upon the incorporation of the new company prescribed in paragraph (1) of the preceding Article and has remained to serve as any of the new company's directors or the company's employee prescribed in the same item may not receive payment of severance pay from the reorganizing company.

(2)The period of service of the person prescribed in the preceding paragraph at the reorganizing company is deemed to be their period of service at the new company prescribed in the same paragraph in calculating their severance pay.

Article 227If a reorganization plan provides for the splitting or consolidation of shares of the reorganizing company or the allotment of shares without contribution, a case related to the petition for permission under the provisions of Article 234, paragraph (2) of the Companies Act (including cases where applied mutatis mutandis pursuant to Article 235, paragraph (2) of the same Act) is subject to the jurisdiction of the reorganization court until reorganization is closed, notwithstanding the provisions of Article 868, paragraph (1) of the same Act.

Article 228When secured or unsecured reorganization creditors or shareholders are granted, pursuant to the provisions of a reorganization plan, entitlement to the allotment of shares for subscription or shares solicited at incorporation, share options, or bonds for subscription of the reorganization company or the new company prescribed in Article 225, paragraph (1), the entitlement may be assigned to others.

Article 229When secured or unsecured reorganization creditors or shareholders acquire, pursuant to the provisions of a reorganization plan, shares of the reorganizing company or the stock company to be incorporated pursuant to the provisions of the reorganization plan, the acquisition of shares, for the purpose of application of Article 11 of the Act on Prohibition of Private Monopolization and Maintenance of Fair Trade (Act No, 54 of 1947), is deemed to be acquisition as a result of substitute performance.

Article 230The provisions of the laws and regulations concerning restrictions on the handling of mortgageable factory assets and any other bodies of assets, or any assets that belongs to a body of assets do not apply when a reorganizing company's assets are handled pursuant to the provisions of a reorganization plan.

Article 231If a reorganization plan provides that rights and obligations based on permission, authorization, license, or any other disposition that the reorganization company obtained from an administrative agency will be transferred to the new company prescribed in Article 225, paragraph (1), the new company succeeds to the rights and obligations, notwithstanding the provisions of other laws and regulations.

Article 232(1)If a reorganization plan provides that the new company prescribed in Article 225, paragraph (1) will succeed to the reorganization company's debts arising from the right to impose taxes or other charges, the new company will be obliged to pay the debts and the reorganizing company will be released from the debts.

(2)When a ruling to commence reorganization is made, the reorganization company's business year ends at the time of the commencement, and the business year that follows ends at the time confirming the reorganization plan (or the date of the end of reorganization if this occurs prior to the time of confirmation); provided, however, that this does not preclude the application of the provisions of the proviso to Article 13, paragraph (1) of the Corporation Tax Act (Act No. 34 of 1965) and Article 72-13, paragraph (4) of the Local Tax Act.

(3)With regard to the corporation tax, prefectural inhabitants tax, enterprise tax, and municipal inhabitants tax for the reorganizing company's business year or consolidated business year that follows the time of commencement of reorganization, the provisions of Article 71 of the Corporation Tax Act, Article 81-19 or Article 144-3 of the same Act, and the provisions of Article 53, paragraph (2), Article 72-26 or Article 321-8, paragraph (2) of the Local Tax Act do not apply.

Article 233(1)If, after a ruling confirming the reorganization plan is made, the need to modify any particulars specified in the reorganization plan arises due to unavoidable grounds, the court, only prior to the end of reorganization, upon the petition of a trustee, the reorganizing company, a secured or unsecured reorganization creditors , or a shareholder, may modify the reorganization plan.

(2)If a petition is filed pursuant to the provisions of the preceding paragraph for any modification of a reorganization plan that is found to adversely affect secured or unsecured reorganization creditors or shareholders, the provisions concerning the procedure to be performed upon the submission of a proposed reorganization plan apply mutatis mutandis; provided, however, that it is not required to have secured or unsecured reorganization creditors or shareholders that will not be adversely affected by the modification of the reorganization plan participate in the modification procedure, and those that do not exercise their voting rights on the proposed modification (excluding those that attended the stakeholders meeting aimed for adopting a resolution on the proposed modification) and have consented to the initial reorganization plan is deemed to consent to the proposed modification.

(3)If a debt is to be assumed or the term of a debt is to be extended based on the modified reorganization plan, the term of the debt must not exceed the following periods:

(4)The provisions of the preceding paragraph do not apply when, pursuant to the provisions of the modified reorganization plan, corporate bonds are issued or the terms of the corporate bonds already issued pursuant to the provisions of the reorganization plan are extended.

(5)The modified reorganization plan will become effective as of the time when a ruling of modification under the provisions of paragraph (1) or a ruling of confirmation under the provisions of paragraph (2) is made.

(6)An immediate appeal may be filed against the order prescribed in the preceding paragraph. In this case, the provisions of Article 202, paragraph (2) through paragraph (5) apply mutatis mutandis.

(7)The provisions of Article 72, paragraph (7) apply mutatis mutandis when the provisions of the reorganization plan under the provisions of the first sentence of Article 72, paragraph (4) are rescinded as a result of the modification of the reorganization plan.

Article 234Reorganization ends when any of the following events occur:

Article 246(1)A bankruptcy trustee, when a fact constituting the grounds for commencement of reorganization prescribed in Article 17, paragraph (1) exists with regard to the stock company that is the bankrupt, may file a petition to commence reorganization against the stock company, with permission of the court (meaning a judge or panel of judges in charge of the bankruptcy case; the same applies in this Article).

(2)The court may grant the permission referred to in the preceding paragraph only where it finds that reorganization conforms to the common interests of creditors.

(3)If a petition for the permission referred to in paragraph (1) is filed, the court, except where it is obvious that the petition should be denied or the permission should be granted, must hear opinions from the labor union or relevant representative (meaning the labor union consisting of the majority of the stock company's employees, if there is any such labor union, or the person representative of the majority of the stock company's employees, if there is no labor union consisting of the majority of the stock company's employees), before making a ruling on the petition.

(4)The provisions of Article 20, paragraph (1) do not apply to a petition to commence reorganization filed under the provisions of paragraph (1).

Article 247(1)Where the court makes a ruling to commence reorganization, if finding it appropriate while taking into consideration the content and cause of each bankruptcy claim filed in the bankruptcy proceedings to be stayed pursuant to the provisions of Article 50, paragraph (1), the number of disputed bankruptcy claims prescribed in the main clause of Article 125, paragraph (1) of the Bankruptcy Act, whether or not any distribution will be made through the bankruptcy proceedings, and any other circumstances concerned, it may make a ruling, upon making the ruling to commence reorganization, to the effect that reorganization creditors that hold reorganization claims that have been filed as bankruptcy claims in the bankruptcy proceedings (excluding a right to impose taxes or other charges prescribed in Article 97, item (iv) of the same Act and claims for a fine or court costs prescribed in item (vi) of the same Article; the same applies in this Article) are not required to file proof of the reorganization claims.

(2)When the court has made a ruling pursuant to the provisions of the preceding paragraph, must indicate, in the public notice to be given under the provisions of Article 43, paragraph (1), that reorganization creditors that hold reorganization claims that have been filed as bankruptcy claims in the bankruptcy proceedings referred to in the preceding paragraph are not required to file a proof of the reorganization claims, and must give a notice to known reorganization creditors to that effect.

(3)If a ruling under the provisions of paragraph (1) is made, with regard to claims that have been filed as bankruptcy claims in the bankruptcy proceedings referred to in the same paragraph, it is deemed that the persons that have filed a proof of the bankruptcy claims (or persons that have received a change of the name of the holder of filed claims with regard to the claims filed in the bankruptcy proceedings, if there is any such person; the same applies in paragraph (5)) have filed a proof of reorganization claims on the first day of the period for filing a proof prescribed in Article 138, paragraph (1).

(4)In the case referred to in the preceding paragraph, for each of the categories of filing a proof of particulars stated in the following items regarding the claim that has been filed as a bankruptcy claim, it is deemed that the persons referred to in the preceding paragraph have filed a proof of the particulars specified in the respective items as filing a proof of a reorganization claim:

(5)If the person that filed a proof of a claim as a bankruptcy claim has filed a proof of a reorganization claim within the period for filing a proof of the claims prescribed in Article 138, paragraph (1), the provisions of the preceding two paragraphs do not apply to any claim filed as a bankruptcy claim referred to in paragraph (3), which is held by the person that has filed a proof of a claim as a bankruptcy claim.

Article 248(1)A trustee in charge of rehabilitation proceedings, when a fact constituting the grounds for commencement of reorganization prescribed in Article 17, paragraph (1) exists with regard to the stock company that is the rehabilitation debtor, may file a petition to commence reorganization against the stock company, with permission of the court (meaning a judge or panel of judges in charge of the rehabilitation case; the same applies in this Article).

(2)The court may grant the permission referred to in the preceding paragraph only when it finds that enforcing reorganization conforms to the common interests of creditors.

(3)If a petition for the permission referred to in paragraph (1) is filed, the court, except where it is obvious that the petition should be denied or permission should be granted, must hear opinions from the labor union or relevant representative prescribed in Article 246, paragraph (3), before making a ruling on the petition.

(4)The provisions of Article 20, paragraph (1) do not apply to a petition to commence reorganization filed under the provisions of paragraph (1).

Article 249(1)Where the court makes a ruling to commence reorganization, if finding it appropriate while taking into consideration the content and cause of each rehabilitation claim that has been filed in the rehabilitation proceedings to be stayed pursuant to the provisions of Article 50, paragraph (1), the number of disputed rehabilitation claims prescribed in the main clause of Article 105, paragraph (1) of the Civil Rehabilitation Act, whether or not any right will be modified by a rehabilitation plan and the content of the modification, and any other circumstances concerned, it may make a ruling, upon making the ruling to commence reorganization, to the effect that reorganization creditors that hold reorganization claims that have been filed as rehabilitation claims in the rehabilitation proceedings (excluding claims for a fine or court costs arising prior to the commencement of rehabilitation proceedings prescribed in Article 97, item (i) of the same Act; the same applies in this Article) are not required to file a proof of the reorganization claims.

(2)The court, when it has made a ruling pursuant to the provisions of the preceding paragraph, must indicate, in the public notice to be given under the provisions of Article 43, paragraph (1), that reorganization creditors that hold reorganization claims that have been filed as rehabilitation claims in the rehabilitation proceedings referred to in the preceding paragraph are not required to file a proof of the reorganization claims, and must give a notice to known reorganization creditors to that effect.

(3)If a ruling under the provisions of paragraph (1) is made, with regard to claims that have been filed as rehabilitation claims in the rehabilitation proceedings referred to in the same paragraph, it is deemed that the persons that have filed a proof of the rehabilitation claims (or persons that have received a change of the name of the holder of filed claims with regard to the claims filed in the rehabilitation proceedings, if there is any such person; the same applies in paragraph (5)) have filed a proof of reorganization claims on the first day of the period for filing a proof prescribed in Article 138, paragraph (1).

(4)In the case referred to in the preceding paragraph, for each of the categories of filing a proof of particulars stated in the following items regarding the claim that has been filed as a rehabilitation claim, it is deemed that the persons referred to in the preceding paragraph have filed a proof of particulars specified in the respective items as filing a proof of a reorganization claim:

(5)If the person that filed a proof of a claim as a rehabilitation claim has filed a proof of a reorganization claim within the period for filing a proof of claims prescribed in Article 138, paragraph (1), the provisions of the preceding two paragraphs do not apply to any claim filed as a rehabilitation claim referred to in paragraph (3), which is held by the person that has filed a proof of a claim as a rehabilitation claim.

Article 250Where, before or after the commencement of bankruptcy proceedings, a ruling to commence reorganization has been made against the same debtor, the court (meaning a judge or panel of judges in charge of the bankruptcy case), if finding it appropriate in order to handle the bankruptcy case, by its own authority, may transfer the bankruptcy case to the reorganization court.

Article 251(1)If, with regard to the reorganizing company against which bankruptcy proceedings have not yet been commenced, a ruling set aside the ruling to commence reorganization, a ruling to discontinue reorganization, or a ruling disconfirming the reorganization plan is made, notwithstanding the provisions of Article 50, paragraph (1), a petition to commence bankruptcy proceedings may be filed with the reorganization court against the reorganizing company even before the respective order becomes final and binding. The same applies when, with regard to the reorganizing company against which bankruptcy proceedings have been commenced, a ruling to discontinue reorganization under the provisions of Article 241, paragraph (1) is made after the bankruptcy proceedings have ceased to be effective as a result of a ruling confirming the reorganization plan being made.

(2)The provisions of the first sentence of the preceding paragraph do not apply where rehabilitation proceedings have already been commenced against the reorganization company prescribed in the first sentence of the same paragraph.

(3)A ruling to commence bankruptcy proceedings based on the petition to commence bankruptcy proceedings filed under the provisions of paragraph (1) may not be made unless a ruling prescribed in the first sentence of the same paragraph or a ruling to discontinue reorganization referred to in the second sentence of the same paragraph becomes final and binding.

Article 252(1)If any of the grounds stated in Article 234, item (i) through item (iv) occur with regard to a stock company against which bankruptcy proceedings have not yet been commenced, the court, when it finds that a fact constituting the grounds for commencement of bankruptcy proceedings exists with regard to the stock company, by its own authority, may make a ruling to commence bankruptcy proceedings in accordance with the Bankruptcy Act; provided, however, that this does not apply where rehabilitation proceedings have already been commenced against the stock company.

(2)If, after the bankruptcy proceedings commenced against the reorganizing company have ceased to be effective as a result of a ruling confirming the reorganization plan being made, a ruling to discontinue reorganization under the provisions of Article 241, paragraph (1) becomes final and binding, the court, by its own authority, must make a ruling to commence bankruptcy proceedings in accordance with the Bankruptcy Act; provided, however, that this does not apply when the court makes a ruling commencing bankruptcy proceedings based on a petition to commence bankruptcy proceedings under the provisions of the second sentence of paragraph (1) of the preceding Article.

Article 253(1)In the following cases, the court, if finding it necessary, by its own authority, may issue a stay order under the provisions of Article 24, paragraph (1) of the Bankruptcy Act, comprehensive prohibitory injunction prescribed in Article 25, paragraph (2) of the same Act, provisional remedy under the provisions of Article 28, paragraph (1) of the same Act, order provisional administration prescribed in Article 91, paragraph (2) of the same Act or provisional remedy under the provisions of Article 171, paragraph (1) of the same Act (referred to as "provisional remedy and other measures" in this Article and Article 256, paragraph (4)):

(2)If the court, after issuing a provisional remedy or other measure under the provisions of item (i) or item (ii) of the preceding paragraph, has decided not to make a ruling to commence bankruptcy proceedings under the provisions of the main clause of paragraph (1) of the preceding Article, it must void the provisional remedy or other measure without delay.

(3)The provisional remedy or other measures issued under the provisions of paragraph (1), item (i) will cease to be effective when a ruling to set aside the ruling prescribed in the same item is made.

(4)Notwithstanding the provisions of Article 24, paragraph (4), Article 25, paragraph (6), Article 28, paragraph (3), Article 91, paragraph (5), and Article 171, paragraph (4) of the Bankruptcy Act, no immediate appeal may be filed against a ruling made under the provisions of paragraph (2).

Article 254(1)In the following cases concerning a stock company against which bankruptcy proceedings have not yet been commenced, for the purpose of application of the relevant provisions of the Bankruptcy Act (meaning the provisions of the Bankruptcy Act, Article 71, paragraph (1), item (iv) and paragraph (2), item (ii) and item (iii), Article 72, paragraph (1), item (iv) and paragraph (2), item (ii) and item (iii), Article 160 (excluding paragraph (1), item (i)), Article 162 (excluding paragraph (1), item (ii)), Article 163, paragraph (2), Article 164, paragraph (1) (including cases where applied mutatis mutandis pursuant to paragraph (2) of the same Article), Article 166, and Article 167, paragraph (2) (including cases where applied mutatis mutandis pursuant to Article 170, paragraph (2)); the same applies in paragraph (3)), a petition to commence reorganization (meaning a petition to commence reorganization, a petition to commence special liquidation in the proceedings for special liquidation that have ceased to be effective as a result of the commencement of reorganization, a petition to commence rehabilitation proceedings in the rehabilitation proceedings that have ceased to be effective as a result of the order confirming the reorganization plan, or any act conducted by the stock company's director, executive officer, or any other person equivalent thereto, which constitutes the crime referred to in Article 265 of the Bankruptcy Act; the same applies in this paragraph) is deemed to be a petition to commence bankruptcy proceedings only when no petition to commence bankruptcy proceedings has been filed prior to the petition to commence reorganization:

(2)For the purpose of application of the provisions of the first sentence of Article 176 of the Bankruptcy Act when a ruling to commence bankruptcy proceedings prescribed in the items of the preceding paragraph is made upon the end of reorganization as a result of a ruling disconfirming the reorganization plan or ruling to discontinue reorganization becoming final and binding, the date of any of the following rulings is deemed to be the date of commencement of bankruptcy proceedings referred to in the first sentence of the same Article:

(3)For the purpose of application of the relevant provisions of the Bankruptcy Act where, with regard to the reorganizing company against which bankruptcy proceedings have already been commenced, a ruling to commence bankruptcy proceedings is made based on a petition to commence bankruptcy proceedings filed under the provisions of the second sentence of Article 251, paragraph (1) or a ruling to commence bankruptcy proceedings is made under the provisions of Article 252, paragraph (2), it is deemed that a petition to commence bankruptcy proceedings is filed at the time when the petition to commence bankruptcy proceedings is filed in the bankruptcy proceedings that have ceased to be effective as a result of a ruling confirming the reorganization plan being made.

(4)For the purpose of application of the provisions of the first sentence of Article 176 of the Bankruptcy Act if a ruling to commence bankruptcy proceedings prescribed in the preceding paragraph is made, the date of commencement of bankruptcy proceedings in the bankruptcy proceedings that have ceased to be effective as a result of a ruling confirming the reorganization plan being made is deemed to be the date of commencement of bankruptcy proceedings referred to in the first sentence of the same Article.

(5)For the purpose of application of the provisions of Article 148, paragraph (1), item (iii) of the Bankruptcy Act when a ruling to commence bankruptcy proceedings prescribed in the items of paragraph (1) or in paragraph (3) is made, the phrase " comprehensive prohibitory injunction" is replaced with a "comprehensive prohibitory injunction or a comprehensive prohibitory injunction prescribed in Article 25, paragraph (2) of the Corporate Reorganization Act", and "for a certain part of the one-year period" is replaced with " a certain part of the one-year period or a disposition to collect national tax arrears may not be enforced for a certain part of the one-year period under Article 50, paragraph (2) of the same Act".

(6)If a ruling to commence bankruptcy proceedings prescribed in the preceding paragraph is made, common-benefit claims (including the claims prescribed in Article 62, paragraph (2) and Article 128, paragraph (1) and paragraph (4) when reorganization is not commenced; the same applies in Article 257) will be claims on the estate. The same applies when bankruptcy proceedings commenced against a stock company are continued as a result of the occurrence of any of the grounds stated in Article 234, item (i) through item (iii) or a ruling to discontinue reorganization under the provisions of Article 236 or Article 237, paragraph (1) becoming final and binding.

Article 255(1)If the court (meaning a judge or panel of judges in charge of the bankruptcy case; the same applies in the following paragraph) makes a ruling commencing bankruptcy proceedings prescribed in the items of paragraph (1) of the preceding Article or in paragraph (3) of the same Article, if finding it appropriate while taking into consideration the content and cause of each secured or unsecured reorganization claim as well as the amount of the voting right as filed in the reorganization that have been closed, the number of disputed secured or unsecured reorganization claims prescribed in the main clause of Article 151, paragraph (1), whether or not any right will be modified by a reorganization plan and the content of the modification, and any other circumstances concerned, it may make a ruling, upon making the ruling to commence bankruptcy proceedings, to the effect that bankruptcy creditors that hold bankruptcy claims, a proof of which has been filed as secured or unsecured reorganization claims in the reorganization (excluding rights to impose taxes or other charges and claims for fine or court costs arising prior to the commencement of reorganization prescribed in Article 142, item (ii); the same applies in this Article) are not required to file a proof of the bankruptcy claims.

(2)The court, when it has made a ruling pursuant to the provisions of the preceding paragraph, must indicate, in the public notice to be given under the provisions of Article 32, paragraph (1) of the Bankruptcy Act, that bankruptcy creditors that hold bankruptcy claims, the proof of which have been filed as secured or unsecured reorganization claims in the reorganization referred to in the preceding paragraph, are not required to file a proof of the bankruptcy claims, and must give a notice to known bankruptcy creditors to that effect.

(3)If a ruling under the provisions of paragraph (1) is made, with regard to claims the proof of which has been filed as secured or unsecured reorganization claims in the reorganization referred to in the same paragraph, it is deemed that the persons that have filed a proof of the secured or unsecured reorganization claims (or persons that have received a change of the name of the holder of the filed claims with regard to the claims filed in the reorganization, if there is any such person; the same applies in paragraph (6)) have filed a proof of bankruptcy claims (including a proof of the particulars prescribed in Article 111, paragraph (1), item (iv) of the Bankruptcy Act) on the first day of the period for filing a proof of claims prescribed in Article 111, paragraph (1) of the same Act.

(4)In the case referred to in the preceding paragraph, for each of the categories of filing a proof of particulars stated in the following items regarding the claim that has been filed as a secured or unsecured reorganization claim, it is deemed that the persons referred to in the preceding paragraph have filed a proof of particulars specified in the respective items as filing a proof of a bankruptcy claim:

(5)In the cases referred to in the preceding two paragraphs, the amount of the bankruptcy claim, which is secured by any security right that exists on the reorganizing company's assets as of the time of commencement of reorganization and which is deemed to have been filed both as a reorganization claim and a secured reorganization claim, will be the sum of the amount of the reorganization claim and the amount of the secured reorganization claim each of which is deemed to have been filed as the amount of the bankruptcy claim pursuant to the provisions of the preceding paragraph.

(6)If the person that filed a proof of a claim as a secured or unsecured reorganization claim has filed a proof of a bankruptcy claim within the period for filing a proof of claims prescribed in Article 111, paragraph (1) of the Bankruptcy Act, the provisions of the preceding three paragraphs do not apply to any claim filed as a secured or unsecured reorganization claim referred to in paragraph (3), which is held by the person that filed a proof of a claim as a secured or unsecured reorganization claim

Article 256(1)If any of the grounds stated in Article 234, item (iii) or item (iv) occur, if a ruling to commence bankruptcy proceedings prescribed in the items of Article 254, paragraph (1) or in paragraph (3) of the same Article is made, a bankruptcy trustee may take over an action referred to in Article 97, paragraph (1) that is discontinued pursuant to the provisions of Article 52, paragraph (4). In this case, a petition for taking over the action may also be filed by the opponent.

(2)In the case referred to in the preceding paragraph, the opponent's claim for court costs against a trustee will be a claim on the estate.

(3)In the case referred to in paragraph (1), if the bankruptcy proceedings are closed before the action referred to in Article 97, paragraph (1) discontinued pursuant to the provisions of Article 52, paragraph (4) is taken over under the provisions of paragraph (1), the action will be closed.

(4)An action referred to in Article 97, paragraph (1), which is discontinued pursuant to the provisions of Article 52, paragraph (4) and pertains to a reorganization case involving the stock company against which bankruptcy proceedings have not yet been commenced, will be closed if a ruling to commence bankruptcy proceedings prescribed in the items of Article 254, paragraph (1) is not made within one month from the date of discontinuance of the action (if, for a certain part of the one-month period, provisional remedy and other measures are issued under the provisions of Article 253, paragraph (1), item (i) or item (ii) or a provisional remedy is issued in bankruptcy proceedings based on a petition to commence bankruptcy proceedings prescribed in the items of Article 254, paragraph (2), the part of the period will be excluded).

(5)The proceedings for a petition for assessment of the secured or unsecured reorganization claim prescribed in the main clause of Article 151, paragraph (1) and the proceedings for a petition for valuation prescribed in Article 153, paragraph (1), both of which continue to be pending pursuant to the provisions of Article 163, paragraph(1), is to be closed when a ruling to commence bankruptcy proceedings prescribed in the items of Article 254, paragraph (1) or in paragraph (3) of the same Article is made. In this case, the provisions of Article 163, paragraph (3) do not apply.

(6)The provisions of paragraph (4) apply mutatis mutandis to an action to oppose assessment of the secured or unsecured reorganization claim prescribed in Article 152, paragraph (1), which is discontinued pursuant to the provisions of Article 163, paragraph (4) and pertains to a reorganization case involving the stock company against which bankruptcy proceedings have not yet been commenced.

Article 257If a rehabilitation case is pending against a stock company, when the rehabilitation proceedings are continued as a result of the occurrence of any of the grounds stated in Article 234, item (i) through item (iii) or a ruling to discontinue reorganization under the provisions of Article 236 or Article 237, paragraph (1) becoming final and binding, common-benefits claims in the reorganization will be common benefit claims in the rehabilitation proceedings.