Article 17(1)When there is a fact constituting grounds for commencement of a reorganization (meaning any of the facts listed 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 an order 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 an order 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 with prejudice on the merits or make an order commencing 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 an order 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 an order commencing reorganization being made. In this case, after an order to stay under the provisions of paragraph (1) or paragraph (2) of the following Article, comprehensive prohibition order prescribed in Article 25, paragraph (2), provisional disposition under the provisions of Article 28, paragraph (1), permission under the provisions of Article 29, paragraph (3), orders for temporary administration prescribed in Article 30, paragraph (2), supervision order prescribed in Article 35, paragraph (2), or provisional disposition 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, the court, when it finds a fact constituting the grounds for the commencement of reorganization, makes an order commencing reorganization, except in any of the cases listed in the following items:

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

Article 42(1)The court, upon making an order commencing a reorganization, must appoint one or more trustees and specify a period during which a proof of a reorganization claim, etc. should be filed and a period for conducting an investigation of reorganization claims, etc.

(2)In the case referred to in the preceding paragraph, the court, if there are one thousand or more known reorganization creditors and it finds it appropriate, may make an order not to give a notice to known 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), reorganization creditors that have filed a proof of their reorganization claims, etc. pursuant to the provisions of Article 138 through Article 140 or Article 142 (hereinafter referred to as "holders of filed reorganization claims, etc.").

Article 43(1)The court, when it has made an order commencing reorganization, must immediately give a public notice of the following; provided, however, that when there is no bond administrator, etc. prescribed in item (v), a public notice of the particulars set forth in the same item is not required:

(2)When an order set forth in paragraph (2) of the preceding Article is made, the court, beyond the particulars listed in the items of the preceding paragraph, must give a public notice to the effect that it will not give a notice to known 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 holders of filed reorganization claims, etc. 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 listed 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 set forth 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 set forth in paragraph (1), item (iii) (limited to cases where there is a change to the period during which a proof of reorganization claims, etc. should be filed); provided, however, that when the order set forth in paragraph (2) of the preceding Article is made, the notice is not required to be given to known 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 set forth in the preceding paragraph is filed against an order to dismiss with prejudice a petition to commence reorganization.

(3)The court that has made an order commencing reorganization , if an immediate appeal set forth in paragraph (1) is filed and an order to revoke the relevant order becomes final and binding, must immediately give a public notice of the main text of the revocation order and give a notice of the main text thereof to the persons listed 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 an order set forth in Article 42, paragraph (2) is made, the notice is not required to be given to known reorganization creditors.

Article 45(1)During the period after the commencement of a reorganization until the close thereof, 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 the close thereof, 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 the close thereof, the acts listed in Article 467, paragraph (1), item (i) to item (ii)-2 of the Companies Act (hereinafter referred to as the "transfer of the business, etc." 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, etc. relating to 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 an order 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, etc. relating to the reorganizing company. In this case, the court may grant permission only when it finds such transfer of the business, etc. to be necessary for the reorganization of the reorganizing company's business.

(3)The court, when granting the permission set forth in the preceding paragraph, must hear opinions from the following persons:

(4)If a trustee intends to conduct the transfer of the business, etc. 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 set forth in paragraph (2) in any of the following cases:

(8)The provisions of paragraph (4) to the preceding paragraph do not apply when the counterparty to the contract for the transfer of the business, etc. 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 set forth in paragraph (2), unable to pay its debts in full with its assets.

(9)Any act conducted without the permission set forth 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, etc. relating to the reorganizing company is conducted with the permission set forth in paragraph (2).

Article 47(1)With regard to a reorganization claim, etc., 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 reorganization claim, etc., the court, even before it makes an order of confirmation of the reorganization plan, may permit payment of the claim in whole or part upon the petition of a trustee or by its own authority,.

(3)The court, when granting permission under the provisions of the preceding paragraph, must take into consideration the status of transactions between the reorganizing company and the small or medium-sized enterprise set forth 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 reorganization creditor, etc. to file the petition set forth 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 reorganization claim, etc. at an early stage, or significant hindrance would be caused to the continuation of the reorganizing company's business unless a small reorganization claim, etc. is paid at an early stage, the court, even before it makes an order of confirmation of the reorganization plan, may permit payment of such claim upon the petition of a trustee.

(6)The provisions of paragraph (2) to 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 claim for taxes, etc. (excluding a claim for a foreign tax subject to mutual assistance) that is a reorganization claim, etc. 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 reorganization claim, etc. conforms to the common interests of reorganization creditors, etc., a trustee may effect such a set-off with permission of the court.

Article 48(1)If a reorganization creditor owes a debt to the reorganizing company at the time of commencement of the reorganization, the reorganization creditor, etc., 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 reorganization creditor is subject to a time limit.

(2)When the debt owed by a reorganization creditor, etc. to the reorganizing company at the time of commencement of the reorganization is a rent debt, the reorganization creditor, etc. 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 set forth 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 set forth 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 reorganization creditor, etc., 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 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 reorganization creditor, etc. 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 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 listed 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 reorganization claim, etc. prescribed in these provisions arose from any of the causes listed in the following items:

Article 50(1)If an order commencing 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, enforce compulsory execution, etc. prescribed in Article 24, paragraph (1), item, (ii), exercise of a security right on whole company assets or disposition of foreign tax delinquency 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 reorganization claim, etc., and the bankruptcy proceedings, the rehabilitation proceedings, the procedure for compulsory execution, etc. prescribed in item (ii) of the same paragraph, procedure for the exercise of a security right on whole company assets and the disposition of foreign tax delinquency 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 reorganization claim, etc. will be stayed, and the special liquidation proceedings will cease to be effective.

(2)When an order commencing reorganization is made, the disposition of national tax delinquency 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 of national tax delinquency already initiated against the reorganizing company's assets will be stayed.

(3)The court, when it finds it necessary, upon the petition of a trustee or by its own authority, may extend the one-year period set forth 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 set forth in the preceding paragraph.

(5)The court, when it finds it unlikely to cause hindrance to reorganization, upon the petition of a trustee or the person that has the power to collect a claim for taxes, etc. (excluding a claim for a foreign tax subject to mutual assistance) or by its own authority, may order the continuation of the following procedures:

(6)The Court, when it finds it necessary for reorganization, upon the petition of a trustee or by its own authority, may order the continuation of the procedures listed in the items of the preceding paragraph, while requiring or not requiring the provision of security.

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

(8)A trustee, when requested by a secured reorganization creditor to file the petition set forth 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)When an order commencing reorganization is made, the following claims are common-benefit claims:

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

(11)When an order commencing reorganization is made, the prescription for a fine, petty fine, and collection of equivalent value will not run until the reorganization is closed (when an order of confirmation of 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 procedures continued pursuant to the provisions of paragraph (5) of the preceding Article and the procedure for the execution of the security right for which a petition may now be filed by reason of a cancellation order set forth in paragraph (7) of the same Article, liquidating distribution or delivery of payment (hereinafter referred to as "liquidating distribution, etc." in this Article) may not be implemented; provided, however, that this does not apply to liquidating distribution, etc. in relation to the claim for taxes, etc. involved in the procedure continued pursuant to the provisions of paragraph (5), item (ii) of the preceding Article.

(2)In the procedures prescribed in the main clause of the preceding paragraph (excluding auction procedures to be conducted by reason of a right of retention that is intended to secure a reorganization claim, etc. 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 liquidating distribution, etc. arises (or when an order of confirmation of the reorganization plan is made if no such order has been made by the time when such money arises), an amount of money equivalent to the amount of the money to be appropriated (if liquidating distribution, etc. has been implemented pursuant to the provisions of the proviso to the preceding paragraph, the amount of such liquidating distribution, etc. 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 an order of confirmation of the reorganization plan is made, notwithstanding the provisions of the main clause of paragraph (1), in the procedures prescribed in the main clause of the same paragraph, liquidating distribution, etc. must be implemented with regard to any money to be appropriated for liquidating distribution, etc. (excluding such money appropriated for liquidating distribution, etc. pursuant to the provisions of the proviso to the same paragraph), unless it is not contrary to the nature of the procedure.

Article 52(1)When an order commencing 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 reorganization claim, etc. 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 set forth in Article 97, paragraph (1) when the grounds set forth 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 an order 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 order commencing reorganization against the stock company itself will be presumed to be conducted after the commencement of reorganization.

Article 55(1)If a reorganization creditor has acquired a right based on a reorganization claim, etc. 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 such 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 set forth in the preceding paragraph that takes place on the day on which an order commencing 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 the 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)When the 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)Where 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 reorganization claim, etc. 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 set forth 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 "order commencing bankruptcy proceedings" is deemed to be replaced with "order commencing 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 the close thereof, 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 set forth 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 set forth 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, etc. (meaning remuneration, etc. 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 the close thereof; 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, etc. 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 listed in the items of the preceding paragraph, such 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 the reorganizing company, after conducting an act of disposing of its assets, has received reasonable consideration from the other party to the act, 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 set forth in item (ii) of said 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 set forth in the same item, either of the facts set forth in (a) or (b) below for the cases listed in (a) or (b), respectively (in the case set forth 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, etc.), 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, etc. 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 claim for taxes, etc. (excluding a claim for a foreign tax subject to mutual assistance) or a claim for a fine, etc. 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 execution.

Article 90Any act conducted not less than one year before the date of filing of a petition to commence reorganization, etc. (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 the original state thereof.

(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 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 set forth in each of the following items for the categories listed in the respective items:

(2)Notwithstanding the provisions of item (ii) of the preceding paragraph, in the cases listed in the item, if the reorganizing company, at the time of the act in question, 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 set forth in each of the following items for the categories listed 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 listed 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 set forth 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 set forth 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, if the other party returns the performance that they have received or reimburses the value of such 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 disposition under the provisions of Article 39-2, paragraph (1) (including cases where applied mutatis mutandis pursuant to Article 44, paragraph (2)) is issued, if an order commencing reorganization is made, a trustee may continue the procedure pertaining to the provisional disposition.

(2)If a trustee does not continue the procedure pertaining to a provisional disposition set forth in the preceding paragraph pursuant to the provisions of the same paragraph within one month after an order commencing Reorganization Proceedings is made, the provisional disposition ceases to be effective.

(3)If a trustee intends to continue the procedure pertaining to a provisional disposition set forth 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 such 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 disposition for the procedure to be continued by a trustee pursuant to the provisions of paragraph (1).

Article 95(1)A right of avoidance will be 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 set forth 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 with prejudice on the merits must be made by an order with reasons attached thereto.

(3)The court, when making an order set forth in the preceding paragraph, must interrogate the other party or any subsequent acquirers.

(4)If an order 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 an order upholding a request for avoidance may file an action to oppose within an unextendable period of one month after the day on which the person was served with the order.

(2)The action set forth in the preceding paragraph will be subject to the jurisdiction of the reorganization court.

(3)A judgment rendered with regard to the action set forth in paragraph (1), except where the action is dismissed without prejudice as unlawful, approves, changes, or revokes an order upholding a request for avoidance.

(4)When a judgment which approves the whole or part of an order 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 an order upholding a request for avoidance when the action set forth in the preceding paragraph is not filed within the period prescribed in the same paragraph, is withdrawn or is dismissed without prejudice.

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

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

Article 98A right of avoidance may not be exercised if two years have elapsed 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 elapsed since the date of the act to be avoided.

Article 99(1)If an order commencing reorganization is made, the court, when it finds it necessary, upon the petition of a trustee or by its own authority, may issue the following provisional dispositions:

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

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

(4)The immediate appeal set forth in the preceding paragraph does not have the effect of a stay of execution.

(5)If a judicial decision prescribed in paragraph (3) and a judicial decision on the immediate appeal set forth 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 an order commencing 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, the court, upon the petition of a trustee or by its own authority, may make a judicial decision, by an order, to assess the amount of the claim and other particulars (hereinafter referred to as an "assessment order on the liability of officers" in this Section).

(2)When filing the petition set forth 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 an order to that effect.

(4)When a petition set forth in paragraph (1) is filed or an order set forth 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 an order to dismiss with prejudice the petition set forth in paragraph (1) of the preceding Article must state the reasons therefor.

(2)The court, when making an order set forth in the preceding paragraph, must interrogate the officer, etc. 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 unextendable period of one month after the day on which the person was served the order.

(2)The action set forth in the preceding paragraph will be subject to the jurisdiction of the reorganization court.

(3)In an action set forth in paragraph (1), a trustee must stand as a defendant if it is filed by an officer, etc., and an officer, etc. must stand as a defendant if it is filed by a trustee.

(4)A judgment rendered with regard to the action set forth in paragraph (1), except where the action is dismissed as unlawful without prejudice, approves, changes, or revokes 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 compulsory execution, 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 execution, as prescribed by Article 259, paragraph (1) of the Code of Civil Procedure.

Article 103If an action set forth in paragraph (1) of the preceding Article is not filed within the period set forth in the same paragraph, is withdrawn, or is dismissed without prejudice, 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 listed in the following items. The court may convoke a stakeholders meeting without these petitions when it finds 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 set forth in item (iv) and item (vi) of the same paragraph may not file a petition set forth in the first sentence of the same paragraph.

Article 115(1)On the date of a stakeholders meeting, a trustee, the reorganization company, Holders of Filed reorganization claims, etc., 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 order set forth in Article 42, paragraph (2) is made, holders of filed reorganization claims, etc. 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 holders of filed reorganization claims, etc. 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, etc. 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, the court, upon the petition of an interested person, 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)The court, when it finds it necessary, may request the committee approved pursuant to the provisions of the preceding paragraph (hereinafter referred to as the "reorganization creditors committee") 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)When it is found that the reorganization creditors committee has carried out activities that contribute to ensuring the reorganization of the reorganizing company's business, the court, upon the petition of a reorganization creditor that has incurred necessary expenses for the activities, may permit reimbursement of the amount of expenses, which it finds reasonable, to the reorganization creditor from the reorganizing company assets.

(5)The court, upon the petition of an interested person or by its own authority, may rescind 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) to 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 (hereinafter referred to as the "secured reorganization creditors committee").

(7)The provisions of paragraph (1) apply mutatis mutandis when there is a committee consisting of shareholders, and the provisions of paragraph (2) to 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)A trustee, upon receiving the notice under the provisions of the preceding paragraph, without delay, 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, etc. (meaning written reports, inventory of assets or balance sheets; hereinafter 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, etc. to the reorganization creditors committee.

(2)When a trustee, in the case referred to in the preceding paragraph, has filed a petition set forth in Article 12, paragraph (1), alleging that the written reports, etc. in question contain a detrimental part prescribed in Article 12, paragraph (1), it will be sufficient for the trustee to submit the written reports, etc. excluding the 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)Reorganization creditors, etc. or shareholders, with permission of the court, may jointly or independently appoint one or more representatives.

(2)The court, when it finds it necessary in order to ensure smooth progress in reorganization, may specify a reasonable timeframe and recommend that reorganization creditors, etc. or shareholders appoint a representative.

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

(4)If there are two or more representatives for one reorganization creditor, etc. 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 revoke an order of permission set forth in paragraph (1) or an order of appointment set forth in paragraph (1) of the following Article when it finds the exercise of powers by the representative to be particularly unfair.

(6)Reorganization creditors, etc. or shareholders may dismiss at any time the representative that they have appointed.

Article 123(1)When there are an extremely large number of reorganization creditors, etc. or shareholders that have common interest, if any of these reorganization creditors, etc. or shareholders, despite the recommendation made under paragraph (2) of the preceding Article, does not appoint a representative within the period set forth in the same paragraph, and the court finds that the progress of reorganization would be hindered unless a representative is appointed, the court, on behalf of the reorganization creditors, etc. or shareholders, 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)The court, if it is found that a reorganization creditor, etc., 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, 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 an order made under the provisions of the preceding paragraph.

Article 125(1)After the commencement of reorganization, the court, when it finds it necessary, upon the petition of an interested person or by its own authority, 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)The court, when making the disposition set forth in the preceding paragraph (hereinafter referred to as an "examination order"), in the examination order, 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 revoke an examination order.

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

(5)The immediate appeal set forth in the preceding paragraph does not have the effect of a stay of execution.

(6)If a judicial decision prescribed in paragraph (4) and a judicial decision on the immediate appeal set forth 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 provisional administrator with respect to the business and assets of the company awaiting reorganization based on their authority will be a common-benefit claim.

(2)When the company awaiting reorganization (excluding cases where a provisional administrator is appointed; hereinafter 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 set forth in the preceding paragraph.

(4)When the company awaiting reorganization has conducted any of the acts prescribed in paragraph (2) with permission set forth in paragraph (2) or approval set forth 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 an order commencing 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 an order of confirmation of 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 set forth 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, etc. prescribed in Article 43, paragraph (1), item (v) intends to administer the processes concerning the administration of corporate bonds that are reorganization claims, etc., the court, when it finds it necessary in order to achieve the purpose of reorganization proceedings, may grant permission to the effect that the claim of the bond administrator, etc. 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, etc. set forth in the preceding paragraph has administered the processes concerning the administration of corporate bonds that are reorganization claims, etc. without the permission set forth in the same paragraph, the court, if it is found that the bond administrator, etc. has contributed to ensuring the reorganization of the reorganizing company's business, 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, etc. set forth 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 an order of 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 reorganization claims, etc.

(3)When compulsory execution or provisional seizure is enforced against the reorganizing company's assets based on a common-benefit claim, if the compulsory execution 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, the court, 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, may order the stay or revocation of the procedure for compulsory execution or provisional seizure, while requiring or not requiring the provision of security. The same applies to the stay or revocation of a disposition made by the same procedure as that for making a disposition of national tax delinquency, 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 revoke an order to stay issued under the provisions of the preceding paragraph.

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

(6)The immediate appeal set forth in the preceding paragraph does not have the effect of a stay of execution.

Article 133(1)Common-benefit claims, when it has become obvious that the reorganizing company assets are insufficient for payment of the total amount of 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), the court, upon the petition of a trustee or by its own authority, may order revocation of the procedure for compulsory execution 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 revocation of a disposition made by the same procedure as that for making a disposition of national tax delinquency, 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 revocation order issued under the provisions of the preceding paragraph.

(5)The immediate appeal set forth in the preceding paragraph does not have the effect of a stay of execution.

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 reorganization claim, etc.) 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 an order of confirmation of 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 enforce compulsory execution, 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 of national tax delinquency, 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 reorganization creditor, etc. may participate in reorganization on the basis of a reorganization claim, etc. 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 reorganization creditor, etc. 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 reorganization creditor, etc. has a voting right for their reorganization claim, etc. according to the amount specified in each of the following items for the categories listed in the respective items:

(2)Notwithstanding the provisions of the preceding paragraph, a reorganization creditor, etc. do not have any voting right for a reorganization claim, etc. 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 reorganization creditor, etc., even when they, by exercising their right against the reorganization company's assets that exists in a foreign state, has received payment of their reorganization claim, etc. after an order commencing reorganization is made, may participate in the reorganization with regard to the amount of all reorganization claims, etc. that they hold as of the time before receiving the payment.

(2)The reorganization creditor, etc. set forth in the preceding paragraph may not receive payment as prescribed in a reorganization plan until any other reorganization creditor, etc. with the same priority as theirs receives payment at the same proportion as they have received payment.

(3)The reorganization creditor, etc. set forth in paragraph (1) may not exercise their voting right with regard to the part of the reorganization claims, etc. 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 reorganization claims, etc. 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 reorganization creditor, etc. was unable to file a proof of their reorganization claim, etc. within the period for filing a proof of claims prescribed in paragraph (1) of the preceding Article due to grounds not attributable thereto, 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 reorganization claim, etc. 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 unextendable period of one month after the claim arose.

(4)The filing of a proof set forth in paragraph (1) and paragraph (3) may not be made after an order 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 Reorganization Creditor makes a change to any filed matter, which is prejudicial to the interest of other reorganization creditors, etc., due to grounds not attributable thereto.

Article 140(1)A proof of a reorganization claim, etc. 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 an order of confirmation of the reorganization plan is made, the employee may file a proof of a reorganization claim, etc. with regard to their claim for severance pay only within an unextendable 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 reorganization claim, etc. 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 listed 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 reorganization claim, etc. or any of the claims listed 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 set forth 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 listed 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 claim for taxes, etc. (excluding a claim for a foreign tax subject to mutual assistance) or a claim for a fine, etc. 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, etc. 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 claim for Taxes, etc. 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 set forth 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 some or all of the reorganization creditors, etc. or shareholders must clearly indicate rights held by holders of filed reorganization claims, etc. and shareholders which are to be modified, and also establish the content of rights as modified; provided, however, that this does not apply to reorganization claims, etc. prescribed in Article 172.

(2)If there is a right held by a holder of a filed reorganization claim, etc. 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 reorganization claim, etc. 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 listed 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 an order of confirmation of the reorganization plan, the clauses listed 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, etc. subject to the cash-out involved in the demand for share, etc. cash-out with regard to the shares, etc. subject to the cash-out issued by the reorganization company shall provide for the following matters:

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 for subscription (when the share options for subscription are attached to bonds with share options, the bonds with respect to such bonds with share options will be included; the same applies hereinafter) must determine the following:

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

Article 177-2(1)The following must be set forth in clauses concerning the issuing of shares in exchange for the extinguishment of the whole or part of the rights of reorganization creditors, etc. or shareholders:

(2)The following must be set forth 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; hereinafter the same applies in this Article, Article 183, item (xiii) and Article 225, paragraph (5)) in exchange for the extinguishment of the whole or part of the rights of reorganization creditors, etc. or shareholders:

(3)Clauses concerning the issuing of bonds (excluding those with respect to bonds with share options; hereinafter the same applies in this Article, Article 183, item (xiii), and Article 225, paragraph (5)) in exchange for the extinguishment of the whole or part of the rights of reorganization creditors, etc. 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 set forth 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 (hereinafter referred to as the "company surviving the absorption-type merger") is a stock company; hereinafter the same applies in this paragraph):

(2)The following must be set forth 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; hereinafter the same applies in this paragraph):

(3)Particulars that should be prescribed in an absorption-type merger agreement must be set forth 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 set forth 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 (hereinafter referred to as the "company incorporated in the consolidation-type merger") is a stock company; hereinafter the same applies in this paragraph):

(2)The following must be set forth 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; hereinafter the same applies in this paragraph):

Article 182Particulars that should be prescribed in an absorption-type company split agreement must be set forth 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 set forth 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; hereinafter the same applies in this paragraph):

(2)The following must be set forth 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; hereinafter the same applies in this paragraph):

(3)Particulars that should be prescribed in a share exchange agreement must be set forth 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 set forth 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 holder of a filed reorganization claim, etc., 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 set forth 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 order commencing reorganization.

(4)If there are special circumstances, the court, upon petition or by its own authority, 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, the court, upon the petition of any of the persons prescribed in paragraph (1) or paragraph (2) of the preceding Article, 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 rescind the permission set forth in the main clause of the preceding paragraph at any time until it makes an order 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 an order 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, etc. 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 an order to refer the proposed reorganization plan to a resolution, except in any of the cases listed in the following items:

(2)The court, when making an order to refer to a resolution set forth in the preceding paragraph, must specify the means available to reorganization creditors, etc. or shareholders that may exercise voting rights (hereinafter 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)The court, when it has made an order to refer to a resolution set forth in paragraph (1), 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 the outline thereof to the persons prescribed in the main clause of Article 115, paragraph (1) (excluding those prescribed in paragraph (2) of the same Article).

(4)The court, when it has designated either of the means set forth in paragraph (2), item (ii) or item (iii) as the means of exercising a voting right, 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)When the court has designated the means set forth in paragraph (2), item (ii) as the means of exercising a voting right, if any of the persons listed in the items of Article 114, paragraph (1) (excluding the person that may not file a petition set forth 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 set forth 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 set forth in paragraph (2), item (i) or item (iii) instead.

Article 190(1)A bondholder that has a corporate bond which is a reorganization claim, etc., if there is any bond administrator, etc. prescribed in Article 43, paragraph (1), item (v) for the corporate bond, may exercise voting rights based on the corporate bond, only in any of the cases listed in the following items:

(2)A person that has acquired a corporate bond which is a reorganization claim, etc. 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 set forth 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 reorganization claim, etc. , a resolution at a bondholders meeting set forth in Article 706, paragraph (1) of the Companies Act is adopted or there exists a provisions set forth in the proviso to Article 706, paragraph (1) of the same Act.

Article 191(1)When the court designates either of the means set forth in Article 189, paragraph (2), item (i) or item (iii) as the that of exercising a voting right, a trustee, a holder of filed reorganization claims, etc., or a shareholder may make an objection on the date of a stakeholders meeting with regard to the voting rights of holders of filed reorganization claims, etc. or shareholders; provided, however, that this does not apply to a voting right held by a holder of filed reorganization claims, etc. 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 listed in the respective items:

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

Article 192(1)When the court designates the means set forth 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 listed in the respective items:

(2)The court, upon the petition of an interested person or by its own authority, may change the order 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, when it finds it appropriate, upon making an order to refer a proposed reorganization plan to a resolution, may designate a certain day (hereinafter referred to as the "record date" in this Article) and determine the reorganization creditors, etc. 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 listed 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, when it finds it appropriate, may categorize two or more types of rights listed in the items of Article 168, paragraph (1) as one type of right, or categorize each of the types of rights listed 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 revoke the order set forth in the main clause of the preceding paragraph until it makes an order to refer the proposed reorganization plan to a resolution.

(4)If an order 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 order 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 listed in the respective items for each of the types of rights prescribed in paragraph (1)

Article 197When either of the means set forth 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 reorganization creditors, etc. and shareholders.

Article 198(1)When either of the means set forth 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 listed 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 set forth 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, when it finds it necessary, upon the petition of the person who has submitted a proposed reorganization plan or by its own authority, may extend the period set forth 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 an order of confirmation or disconfirmation of the reorganization plan.

(2)The court must make an order of confirmation of 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 an order of confirmation of the reorganization plan when it finds 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 an order of disconfirmation of the reorganization plan except where it makes an order of confirmation of 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, etc. 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 an order of confirmation or disconfirmation of 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 the outline thereof.

(7)In the case prescribed in the preceding paragraphs, the labor union, etc. prescribed in Article 46, paragraph (3), item (iii) must be given a notice to the effect that the order set forth 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 an order of confirmation of 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)When 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 listed in the items of the preceding paragraph.

(3)When the petition set forth 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 201A reorganization plan becomes effective as of the time when an order confirming the plan is made.

Article 202(1)An immediate appeal may be filed against an order of confirmation or disconfirmation of a reorganization plan.

(2)Notwithstanding the provisions of the preceding paragraph, in the cases listed 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 reorganization creditor, etc. or shareholder that held no voting right, when filing an immediate appeal set forth in paragraph (1), must make a prima facie showing to the effect that they are a reorganization creditor, etc. or shareholder.

(4)The immediate appeal set forth 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 order set forth in the same paragraph should be revoked 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 of confirmation of the reorganization plan, upon the petition of the appellant, may stay the implementation of the whole or part of the reorganization plan or make any other necessary disposition, while requiring or not requiring the provision of security, until an order 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 set forth in paragraph (1).

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

(2)A reorganization plan does not affect any rights held by reorganization creditors, etc. 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 reorganization creditors, etc.

Article 204(1)When an order of confirmation of a reorganization plan is made, the reorganizing company will be discharged from its liabilities for all reorganization claims, etc., 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)When an order for confirmation of the reorganization plan is made, with regard to the claims listed 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)When an order of confirmation of the reorganization plan is made, the rights of holders of filed reorganization claims, etc. and those of shareholders will be modified as prescribed in the reorganization plan.

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

(3)When 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, etc. to be received by shareholders as a result of the modification of rights as set forth in 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, etc.

Article 206(1)When an order of confirmation of 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 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 reorganization claims, etc., 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 set forth in Article 203, paragraph (1), item (iv), the company set forth in item (v) of the same paragraph, reorganization creditors, etc., 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 207When an order of confirmation of the reorganization plan is made, the prescription for a claim for tax, etc. (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 of delinquency pursuant to the provisions of Article 169, paragraph (1).

Article 208When an order of confirmation of the reorganization plan is made, the bankruptcy proceedings, the rehabilitation proceedings (including the bankruptcy proceedings, the procedure for compulsory execution, etc. based on a rehabilitation claim prescribed in Article 26, paragraph (1), item (ii) of the Civil Rehabilitation Act and the disposition of foreign tax delinquency 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 compulsory execution, etc. prescribed in Article 24, paragraph (1), item (ii), the procedure for the exercise of a security right on whole company assets, the disposition of foreign tax delinquency 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 procedures or disposition continued pursuant to the provisions of Article 50, paragraph (5).

Article 209(1)When an order of confirmation of 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 execution of the reorganization plan by the company set forth 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, when it finds 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 set forth 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 listed 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 listed in the items of Article 829 of the same Act or an action seeking invalidation of the acquisition of the shares, etc. subject to the cash-out prescribed in Article 846-2, paragraph (2) of said 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; hereinafter the same shall apply 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 of confirmation of 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) to 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 of confirmation of 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 shall 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 of confirmation of the reorganization plan; provided, however, that if the reorganization plan otherwise provides for the time of the amendment taking effect, the provisions prevail.

Article 213-2Where a reorganization plan, pursuant to the provision of Article 174, item (vi), provides that the business transfer, etc. (limited to the acts listed in Article 467, paragraph (1), item (i) or item (ii) of the Companies Act) will be conducted, the provisions of Article 23-2 of said Act and of Article 18-2 of the Commercial Code as applied pursuant to the provision of Article 24, paragraph (1) of said Act after deemed replacement shall 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 set forth in item (i) of the same Article on the day set forth in item (ii) of the same Article.

Article 214-2Where a reorganization plan, pursuant to the provision of Article 174-3, provides that the special controlling shareholder of the reorganization company will acquire the shares, etc. subject to the cash-out involved in the demand for share, etc. cash-out, the provisions of Article 179-5, Article 179-7 and Article 179-8 of the Companies Act shall 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 set forth in Article 202, paragraph (1), item (i) of the Companies Act to shareholders, even when there is a provision 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 reorganization creditors, etc. or shareholders will be granted entitlement to the allotment of shares for subscription set forth 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 reorganization claims, etc. held by those entitled reorganization creditors, etc. 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 reorganization claims, etc., 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 set forth in item (ii) of the paragraph.

(4)Persons that have entitlement to the allotment of shares for subscription set forth 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 set forth 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 reorganization creditors, etc. or shareholders that have entitlement to the allotment of shares for subscription set forth 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 for subscription set forth 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 reorganization creditors, etc. or shareholders will be granted entitlement to the allotment of share options for subscription set forth 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 reorganization claims, etc. held by those entitled reorganization creditors, etc. 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 reorganization claims, etc., 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 set forth in item (ii) of the preceding paragraph.

(4)Persons that have entitlement to the allotment of share options for subscription set forth 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 for subscription by the due date set forth in item (ii) of the same paragraph.

(5)In the case prescribed in paragraph (2), if the number of the share options for subscription to be allotted to the reorganization creditors, etc. or shareholders that have entitlement to the allotment of share options for subscription set forth 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 for subscription, 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 set forth 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 reorganization creditors, etc. or shareholders will be granted entitlement to the allotment of bonds for subscription set forth 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 reorganization claims, etc. held by those entitled reorganization creditors, etc. 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 reorganization claims, etc., 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 set forth in item (ii) of the preceding paragraph.

(3)Persons that have entitlement to the allotment of bonds for subscription set forth 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 set forth in item (ii) of the same paragraph.

(4)In the case prescribed in paragraph (1), if the number of the bonds for subscription to be allotted to the reorganization creditors, etc. or shareholders that have entitlement to the allotment of bonds for subscription set forth 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 the whole or part of the rights of reorganization creditors, etc. or shareholders, reorganization creditors, etc. or shareholders, at the time of the order of confirmation of the reorganization plan, become shareholders set forth in item (iii) of the same paragraph pursuant to the provisions on the particulars set forth 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 the whole or part of the rights of reorganization creditors, etc. or shareholders, reorganization creditors, etc. or shareholders, at the time of the order of confirmation of the reorganization plan, become subscribers for share options set forth 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 set forth 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 the whole or part of the rights of reorganization creditors, etc. or shareholders, reorganization creditors, etc. or shareholders, at the time of the order of confirmation of the reorganization plan, become bondholders of the bonds set forth in item (vii) of the same paragraph pursuant to the provisions on the particulars set forth 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 set forth in the same paragraph, in the cases listed in the following items, reorganization creditors, etc. will become the persons specified in the respective items on the day on which the absorption-type merger becomes effective (hereinafter referred to as the "effective date" in this Article) pursuant to the provisions on the particulars set forth 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 set forth in the same paragraph, if there are provisions on the particulars set forth in item (ii) of the same paragraph, reorganization creditors, etc. will become partners of the company surviving the absorption-type merger on the effective date pursuant to the provisions on the particulars set forth 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 set forth 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 set forth in the same paragraph, if there are provisions on the particulars set forth in item (iii)(a) of the same paragraph, reorganization creditors, etc. will become bondholders of the bonds set forth in item (iii)(a) of the same paragraph on the effective date pursuant to the provisions on the particulars set forth 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 set forth 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 set forth 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 set forth in the same paragraph, in the cases listed in the following items, reorganization creditors, etc. 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 set forth 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 set forth in the same paragraph, if there are provisions on the particulars set forth in item (ii) of the same paragraph, reorganization creditors, etc. 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 set forth 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 set forth in the same paragraph, if there are provisions on the particulars set forth in item (iii) of the same paragraph, reorganization creditors, etc. will become bondholders of the bonds set forth 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 set forth 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 set forth 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) to paragraph (4) and Article 761, paragraph (2) to paragraph (4) of the Companies Act shall 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) to paragraph (4) and Article 766, paragraph (2) to 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 set forth in the same paragraph, in the cases listed in the following items, reorganization creditors, etc. will become the persons specified in the respective items on the day on which the share exchange becomes effective (hereinafter referred to as the "effective date" in this Article) pursuant to the provisions on the particulars set forth 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 set forth in the same paragraph, if there are provisions on the particulars set forth in item (ii) of the same paragraph, reorganization creditors, etc. will become partners of the wholly owning parent company in the share exchange on the effective date pursuant to the provisions on the particulars set forth 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 set forth 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 set forth in the same paragraph, if there are provisions on the particulars set forth in item (iii)(a) of the same paragraph, reorganization creditors, etc. will become bondholders of the bonds set forth in item (iii)(a) on the effective date pursuant to the provisions on the particulars set forth 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 set forth 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 set forth 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 listed in the following items, reorganization creditors, etc. 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 set forth 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 (hereinafter 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) to 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, etc. in the case where the directors at incorporation, etc. of the new company become the new company's directors, etc. after the incorporation of the new company; the provisions of Article 215, paragraph (2) to paragraph (5) apply mutatis mutandis where reorganization creditors, etc. or shareholders will be granted entitlement to the allotment of shares solicited at incorporation of the new company set forth in Article 183, item (v); the provisions of Article 216 and Article 217 apply mutatis mutandis to the solicitation of subscribers for share options for subscription 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 reorganization creditors, etc. 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 pertaining to the name of the notary), item (ii) (limited to the part pertaining to the particulars listed 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 pertaining to the particulars listed 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, etc. 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 pertaining 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) will be 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 reorganization creditors, etc. 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 for subscription, 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 reorganization creditors, etc. 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 claims for taxes, etc., the new company will be obliged to pay the debts and the reorganizing company will be released from the debts.

(2)When an order commencing 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 of confirmation of 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 an order of confirmation of 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 holder of filed reorganization claims, etc., 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 reorganization creditors, etc. 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 reorganization creditors, etc. 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 an order of modification under the provisions of paragraph (1) or an order 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; hereinafter the same applies in this Article).

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

(3)If a petition for the permission set forth in paragraph (1) is filed, the court, except where it is obvious that the petition should be dismissed without prejudice or the permission should be granted, must hear opinions from the labor union, etc. (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 an order 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 an order commencing reorganization, when it finds 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 liquidating distribution will be made through the bankruptcy proceedings, and any other circumstances concerned, it may make an order, upon making the order commencing reorganization, to the effect that reorganization creditors that hold reorganization claims that have been filed as bankruptcy claims in the bankruptcy proceedings (excluding claims for taxes, etc. prescribed in Article 97, item (iv) of the same Act and claims for a fine, etc. prescribed in item (vi) of the same Article; hereinafter the same applies in this Article) are not required to file a proof of the reorganization claims.

(2)The Court, when it has made an order 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 set forth 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 an order under the provisions of paragraph (1) is made, with regard to claims that have been filed as bankruptcy claims in the bankruptcy proceedings set forth 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 listed in the following items regarding the claim that has been filed as a bankruptcy claim, it is deemed that persons set forth in the preceding paragraph have filed a proof of the particulars specified in the respective items as filing a proof of reorganization claims:

(5)When 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 set forth 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; hereinafter the same applies in this Article).

(2)The court may grant the permission set forth 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 set forth in paragraph (1) is filed, the court, except where it is obvious that the petition should be dismissed without prejudice or permission should be granted, must hear opinions from the labor union, etc. prescribed in Article 246, paragraph (3), before making an order 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 an order commencing reorganization, when it finds 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 an order, upon making the order commencing 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, etc. arising prior to the commencement of rehabilitation proceedings prescribed in Article 97, item (i) of the same Act; hereinafter the same applies in this Article) are not required to file a proof of the reorganization claims.

(2)The court, when it has made an order 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 set forth 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 an order under the provisions of paragraph (1) is made, with regard to claims that have been filed as rehabilitation claims in the rehabilitation proceedings set forth 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 listed in the following items regarding the claim that has been filed as a rehabilitation claim, it is deemed that persons set forth in the preceding paragraph have filed a proof of particulars specified in the respective items as reporting a reorganization claim:

(5)When 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 set forth 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, an order commencing reorganization has been made against the same debtor, the court (meaning a judge or panel of judges in charge of the bankruptcy case), when it finds 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)When, with regard to the reorganizing company against which bankruptcy proceedings have not yet been commenced, an order of revocation of the order commencing reorganization, an order of discontinuance of reorganization, or an order of disconfirmation of 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, an order of discontinuance of reorganization under the provisions of Article 241, paragraph (1) is made after the bankruptcy proceedings have ceased to be effective as a result of an order of confirmation of 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)An order commencing bankruptcy proceedings based on the petition to commence bankruptcy proceedings filed under the provisions of paragraph (1) may not be made unless an order prescribed in the first sentence of the same paragraph or an order of discontinuance of reorganization set forth in the second sentence of the same paragraph becomes final and binding.

Article 252(1)If any of the grounds listed 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 an order commencing 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)Where, after the bankruptcy proceedings commenced against the reorganizing company have ceased to be effective as a result of an order of confirmation of the reorganization plan being made, an order of discontinuance of reorganization under the provisions of Article 241, paragraph (1) becomes final and binding, the court, by its own authority, must make an order commencing bankruptcy proceedings in accordance with the Bankruptcy Act; provided, however, that this does not apply when the court makes an order 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, when it finds it necessary, by its own authority, may issue an order to stay under the provisions of Article 24, paragraph (1) of the Bankruptcy Act, comprehensive prohibition order prescribed in Article 25, paragraph (2) of the same Act, provisional disposition under the provisions of Article 28, paragraph (1) of the same Act, order for temporary administration prescribed in Article 91, paragraph (2) of the same Act or provisional disposition under the provisions of Article 171, paragraph (1) of the same Act (hereinafter referred to as "provisional disposition and other measures" in this Article and Article 256, paragraph (4)):

(2)If the court, after issuing provisional dispositions or other measure under the provisions of item (i) or item (ii) of the preceding paragraph, has decided not to make an order commencing bankruptcy proceedings under the provisions of the main clause of paragraph (1) of the preceding Article, it must revoke the provisional disposition or other measure without delay.

(3)The provisional disposition or other measures issued under the provisions of paragraph (1), item (i) will cease to be effective when an order to revoke the order 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 an order 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, etc. (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 of confirmation of 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 set forth in Article 265 of the Bankruptcy Act; hereinafter 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, etc.:

(2)For the purpose of application of the provisions of the first sentence of Article 176 of the Bankruptcy Act when an order commencing bankruptcy proceedings prescribed in the items of the preceding paragraph is made upon the end of reorganization as a result of an order of disconfirmation of the reorganization plan or order of discontinuance of reorganization becoming final and binding, the date of any of the following orders is deemed to be the date of commencement of bankruptcy proceedings set forth 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, an order commencing 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 an order commencing 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 an order of confirmation of 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 in cases where an order commencing 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 an order of confirmation of the reorganization plan being made is deemed to be the date of commencement of bankruptcy proceedings set forth 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 an order commencing bankruptcy proceedings prescribed in the items of paragraph (1) or in paragraph (3) is made, the phrase " comprehensive prohibition order" is replaced with a "comprehensive prohibition order or a comprehensive prohibition order 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 of national tax delinquency may not be enforced for a certain part of the one-year period under Article 50, paragraph (2) of the same Act".

(6)If an order commencing 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 listed in Article 234, item (i) through item (iii) or an order of discontinuance of reorganization under the provisions of Article 236 or Article 237, paragraph (1) becoming final and binding.

Article 255(1)Where the court (meaning a judge or panel of judges in charge of the bankruptcy case; the same applies in the following paragraph) makes an order commencing bankruptcy proceedings prescribed in the items of paragraph (1) of the preceding Article or in paragraph (3) of the same Article, when it finds it appropriate while taking into consideration the content and cause of each reorganization claim, etc. as well as the amount of the voting right as filed in the reorganization that have been closed, the number of disputed reorganization claims, etc. 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 an order, upon making the order commencing bankruptcy proceedings, to the effect that bankruptcy creditors that hold bankruptcy claims, a proof of which has been filed as reorganization claims, etc. in the reorganization (excluding claims for taxes, etc. and claims for fine, etc. arising prior to the commencement of reorganization prescribed in Article 142, item (ii); hereinafter the same applies in this Article) are not required to file a proof of the bankruptcy claims.

(2)The court, when it has made an order 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 reorganization claims, etc. in the reorganization set forth 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 an order under the provisions of paragraph (1) is made, with regard to claims the proof of which has been filed as Reorganization Claims, etc. in the reorganization set forth in the same paragraph, it is deemed that the persons that have filed a proof of the reorganization claims, etc. (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 set forth 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 listed in the following items regarding the claims that have been filed as a reorganization claim, etc., it is deemed that a person set forth in the preceding paragraph has filed the 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)When the person that filed a proof of a claim as a reorganization claim, etc. 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 reorganization claim, etc. set forth in paragraph (3), which is held by the person that filed a proof of a claim as a reorganization claim, etc.

Article 256(1)If any of the grounds listed in Article 234, item (iii) or item (iv) occur, if an order commencing 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 set forth 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 set forth 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 set forth 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 an order commencing 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 dispositions and other measures are issued under the provisions of Article 253, paragraph (1), item (i) or item (ii) or a provisional disposition, etc. is issued in bankruptcy proceedings based on a petition to commence bankruptcy proceedings set forth 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 reorganization claim, etc. 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 an order commencing 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 reorganization claim, etc. 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 listed in Article 234, item (i) through item (iii) or an order of discontinuance of 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.