Article 21(1)If there is the risk that a fact constituting the grounds to commence bankruptcy proceedings would occur to a debtor, the debtor may file a petition to commence rehabilitation proceedings to the court. The same applies when a debtor is unable to pay debts that are due without causing significant hindrance to the continuation of business.

(2)In the case prescribed in the first sentence of the preceding paragraph, a creditor may also file a petition to commence rehabilitation proceedings.

Article 22Even where, pursuant to the provisions of other Acts, a corporation's director or any other person equivalent thereto must file a petition to commence bankruptcy proceedings or special liquidation against the corporation, these provisions do not preclude these persons from filing a petition to commence rehabilitation proceedings.

Article 23(1)If filing a petition to commence rehabilitation proceedings, a petitioner must make a prima facie showing of the fact constituting the grounds to commence rehabilitation proceedings.

(2)A creditor, when filing a petition referred to in the preceding paragraph, must also make a prima facie showing of the existence of the claim held thereby.

Article 24(1)If filing a petition to commence rehabilitation proceedings, a petitioner must prepay an amount designated by the court as expenses for rehabilitation proceedings.

(2)An immediate appeal may be filed against an order on prepayment of expenses.

Article 24-2If a petition to commence rehabilitation proceedings is filed, the court, before making an order on the relevant petition, must hear opinions of the labor union, etc. (meaning the labor union consisting of the majority of the employees and other workers of the debtor subject to rehabilitation proceedings, if there is any relevant labor union, or the person representative of the majority of the employees and other workers of the debtor subject to rehabilitation proceedings, if there is no labor union consisting of the majority of the employees and other workers of the debtor subject to rehabilitation proceedings; the same applies hereinafter, except in Article 246, paragraph (3)), except where it is obvious that the court should dismiss the relevant petition with prejudice on the merits or make an order to commence rehabilitation proceedings.

Article 25In the cases falling under any of the following items, the court must dismiss with prejudice on the merits a petition to commence rehabilitation proceedings:

Article 26(1)If a petition to commence rehabilitation proceedings is filed, the court, when it finds it necessary, upon the petition of an interested person or by its own authority, may order a stay of the following procedures, proceedings or dispositions until an order is made on the petition to commence rehabilitation proceedings; provided, however, that this only applies, in the case of the procedure set forth in item (ii) or the disposition set forth in item (v), if the stay order is not likely to cause undue damage to the creditors in rehabilitation proceedings who filed the petition for the procedure or the person who made the disposition:

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

(3)If the court finds it particularly necessary for the continuation of the business of the debtor subject to rehabilitation proceedings, upon the petition of the debtor subject to rehabilitation proceedings (or a temporary administrator if any temporary administrator is appointed), it may order the revocation of the procedure stayed pursuant to the provisions of paragraph (1), item (ii) or the disposition stayed pursuant to the provisions of item (v) of the same paragraph, while requiring the provision of security.

(4)An immediate appeal may be filed against a stay order issued under the provisions of paragraph (1), an order made under the provisions of paragraph (2) and a revocation order issued under the provisions of the preceding paragraph.

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

(6)If a judicial decision prescribed in paragraph (4) and a judicial decision on the immediate appeal referred to in the same paragraph are made, the written judgment must be served upon the parties concerned.

Article 27(1)If a petition to commence rehabilitation proceedings is filed and there are special circumstances where the court finds the risk that it would be impossible to achieve the purpose of the rehabilitation proceedings satisfactorily by only issuing a stay order under the provisions of paragraph (1) of the preceding Article, the court, upon the petition of an interested person or by its own authority, may issue an order to prohibit all creditors in rehabilitation proceedings from enforcing, against the assets of the debtor subject to rehabilitation proceedings, compulsory execution based on a rehabilitation claim , etc.and disposition of foreign tax delinquency based on a rehabilitation claim, until an order is made on the petition to commence rehabilitation proceedings; provided, however, that this applies only where the court, in advance or simultaneously, issues a provisional remedy under the provisions of Article 30, paragraph (1) or a disposition under the provisions of Article 54, paragraph (1) or Article 79, paragraph (1) with respect to the principal assets of the debtor subject to rehabilitation proceedings.

(2)If a prohibition order under the provisions of the preceding paragraph (hereinafter referred to as a "comprehensive prohibitory injunction") is issued, the procedure for compulsory execution based on a rehabilitation claim and disposition of foreign tax delinquency based on a rehabilitation claim, which have already been initiated against the assets of the debtor subject to rehabilitation proceedings, is stayed until an order is made on the petition to commence rehabilitation proceedings.

(3)The court may change or revoke a comprehensive prohibitory injunction.

(4)If the court finds it particularly necessary for the continuation of the business of the debtor subject to rehabilitation proceedings, upon the petition of the debtor subject to rehabilitation proceedings (or a temporary administrator if any temporary administrator is appointed), it may order revocation of the procedure for compulsory execution based on a rehabilitation claim or disposition of foreign tax delinquency based on a rehabilitation claim which has been stayed pursuant to the provisions of paragraph (2), while requiring the provision of security to be provided.

(5)An immediate appeal may be filed against a comprehensive prohibitory injunction, an order made under the provisions of paragraph (3) and a revocation order issued under the provisions of the preceding paragraph.

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

(7)If a comprehensive prohibitory injunction is issued, with regard to a rehabilitation claim, the prescription will not be completed until the day on which two months have elapsed since the day following the day on which the comprehensive prohibition order ceases to be effective.

Article 28(1)If a comprehensive prohibitory injunction is issued and an order to change or revoke the relevant order is made, a public notice will be made to that effect, the written judgment will be served upon the debtor subject to rehabilitation proceedings (or a temporary administrator if any temporary administrator is appointed; the same applies in the following paragraph) and the petitioner, and a notice of the main text of the respective order must be given to known creditors in rehabilitation proceedings and the debtor subject to rehabilitation proceedings (limited to cases where a temporary administrator is appointed).

(2)A comprehensive prohibitory injunction and an order to change or revoke the relevant order become effective as of the time when the written judgment is served upon the debtor subject to rehabilitation proceedings.

(3)If a revocation order under the provisions of paragraph (4) of the preceding Article is issued and a judicial decision on an immediate appeal referred to in paragraph (5) of the same Article (excluding an order to change or revoke a comprehensive prohibitory injunction) is made, the written judgment must be served upon the parties concerned.

Article 29(1)If the court finds after issuing a comprehensive prohibitory injunction that the order is likely to cause undue damage to a creditor in rehabilitation proceedings who filed a petition for compulsory execution based on a rehabilitation claim or a person who made a disposition of foreign tax delinquency based on a rehabilitation claim (hereinafter referred to as a "creditor in rehabilitation proceedings, etc." in this paragraph), upon the petition of the relevant creditor in rehabilitation proceedings, etc., the court may make an order that the comprehensive prohibitory injunction be canceled only with regard to that creditor. In this case, the creditor in rehabilitation proceedings, etc. may enforce compulsory execution based on a rehabilitation claim or disposition of foreign tax delinquency based on a rehabilitation claim against the assets of the debtor subject to rehabilitation proceedings, and any procedure for compulsory execution based on a rehabilitation claim or disposition of foreign tax delinquency based on a rehabilitation claim which has been initiated by the relevant creditor in rehabilitation proceedings, etc. prior to the issuance of the comprehensive prohibitory injunction is continued.

(2)For the purpose of application of the provisions of Article 27, paragraph (7) to a person who obtains a cancellation order under the provisions of the preceding paragraph, the phrase "the day on which the comprehensive prohibition order ceases to be effective" in Article 27, paragraph (7) is replaced with "the day on which a cancellation order under the provisions of Article 29, paragraph (1) is made."

(3)An immediate appeal may be filed against a judicial decision on the petition referred to in paragraph (1).

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

(5)If a judicial decision on the petition referred to in paragraph (1) and a judicial decision on the immediate appeal referred to in paragraph (3) 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 30(1)If a petition to commence rehabilitation proceedings is filed, the court, upon the petition of an interested person or by its own authority, may order a provisional seizure or provisional disposition or issue any other necessary provisional remedy concerning the business and assets of the debtor subject to rehabilitation proceedings until an order is made on the petition to commence rehabilitation proceedings.

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

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

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

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

(6)If the court, pursuant to the provisions of paragraph (1), has issued a provisional remedy to prohibit the debtor subject to rehabilitation proceedings from making payment to a creditor in rehabilitation proceedings or conducting any other act with the creditor in rehabilitation proceedings to cause the debt to be extinguished, the creditor in rehabilitation proceedings may not assert, in relation to the rehabilitation proceedings, the effect of the payment or any other act to cause the debt to be extinguished, which is made or conducted in violation of the provisional remedy; provided, however, that this applies only if the creditor in rehabilitation proceedings knows, at the time of commission of the act, the fact that the provisional remedy was issued.

Article 31(1)If a petition to commence rehabilitation proceedings is filed, the court, upon the petition of an interested person or by its own authority, may specify a reasonable period and order a stay of the procedure for the exercise of any security interest that exists on the assets of the debtor subject to rehabilitation proceedings prescribed in Article 53, paragraph (1), when it finds that the stay conforms to the common interest of creditors in rehabilitation proceedings and is not likely to cause undue damage to the auction applicant; provided, however, that this does not apply where the claim secured by that security interest is a common-benefit claim or claim with general priority.

(2)If issuing a stay order under the provisions of the preceding paragraph, the court must hear opinions of the auction applicant.

(3)The court may change or revoke a stay order issued under the provisions of paragraph (1).

(4)Against a stay order under the provisions of paragraph (1) and an order to change the order under the provisions of the preceding paragraph, only the auction applicant may file an immediate appeal.

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

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

Article 32A person who has filed a petition to commence rehabilitation proceedings may withdraw the petition only prior to an order to commence rehabilitation proceedings being made. In this case, after a stay order under the provisions of Article 26, paragraph (1), a comprehensive prohibitory injunction, provisional remedy under the provisions of Article 30, paragraph (1), stay order under the provisions of paragraph (1) of the preceding Article, disposition under the provisions of Article 54, paragraph (1) or Article 79, paragraph (1), provisional remedy under the provisions of Article 134-2, paragraph (1) or stay order under the provisions of Article 197, paragraph (1) is issued or made, permission of the court is required.

Article 33(1)If a petition to commence rehabilitation proceedings that meets the requirement prescribed in Article 21 is filed, the court makes an order to commence rehabilitation proceedings, except where it dismisses the petition with prejudice on the merits pursuant to the provisions of Article 25.

(2)The order referred to in the preceding paragraph becomes effective as of the time when it is made.

Article 34(1)The court, upon making an order to commence rehabilitation proceedings, must specify a period during which proofs of rehabilitation claims should be filed and the period for conducting an investigation of rehabilitation claims.

(2)In the case referred to in the preceding paragraph, the court, if there are 1,000 or more known creditors in rehabilitation proceedings and it finds it appropriate, may make an order not to give a notice to known creditors in rehabilitation proceedings 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 37, and not to summon, on the date of a creditors meeting (excluding one aimed at adopting a resolution on a proposed rehabilitation plan), holders of filed rehabilitation claims prescribed in Article 102, paragraph (1).

Article 35(1)If the court has made an order to commence rehabilitation proceedings, it must immediately make a public notice of the following particulars; provided, however, that when there is no bond administrator prescribed in Article 169-2, paragraph (1), a public notice of the particulars set forth in item (iii) is not required:

(2)If an order referred to in paragraph (2) of the preceding Article is made, the court, beyond the particulars listed in the items of the preceding paragraph, must make a public notice to the effect that it will not give a notice to known creditors in rehabilitation proceedings 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 Article 37, and also will not summon holders of filed rehabilitation claims prescribed in Article 102, paragraph (1) on the date of a creditors meeting (excluding one aimed for adopting a resolution on a proposed rehabilitation plan).

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

(4)Notwithstanding the provisions of the preceding paragraph, when it is obvious that the debtor subject to rehabilitation proceedings is unable to pay off debts using their assets with regard to claims that take preference over consensually-subordinated rehabilitation claims (meaning a claim for which the creditor in rehabilitation proceedings and the debtor subject to rehabilitation proceedings, prior to the commencement of rehabilitation proceedings, reach an agreement to the effect that if bankruptcy proceedings are commenced against the debtor subject to rehabilitation proceedings, the claim will be subordinated to a subordinate bankruptcy claim prescribed in Article 99, paragraph (1) of the Bankruptcy Act (Act No. 75 of 2004) in the order of priority for receiving a liquidating distribution in the bankruptcy proceedings; the same applies hereinafter), the notice under the provisions of the preceding paragraph is not required to be given to the holders of the consensually-subordinated rehabilitation claims if they are known.

(5)The provisions of paragraph (1), item (ii), paragraph (3), item (i) and the preceding paragraph apply mutatis mutandis where there is a change to the period during which proofs of rehabilitation claims should be filed as specified pursuant to the provisions of paragraph (1) of the preceding Article; provided, however, that when an order referred to in paragraph (2) of the same Article is made, the notice is not required to be given to known creditors in rehabilitation proceedings.

Article 36(1)An immediate appeal may be filed against a judicial decision on a petition to commence rehabilitation proceedings.

(2)The provisions of Articles 26 through 30 apply mutatis mutandis where an immediate appeal referred to in the preceding paragraph is filed against an order to dismiss with prejudice on the merits a petition to commence rehabilitation proceedings.

Article 37The court that has made an order to commence rehabilitation proceedings, if an immediate appeal referred to in paragraph (1) of the preceding Article is filed and an order to revoke the relevant order becomes final and binding, must immediately make 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 Article 35, paragraph (3) (excluding a temporary administrator and the persons who are not given a notice under the provisions of paragraph (4) of the same Article); provided, however, that when an order referred to in Article 34, paragraph (2) is made, the notice is not required to be given to known creditors in rehabilitation proceedings.

Article 38(1)A debtor subject to rehabilitation proceedings, even after a rehabilitation proceeding is commenced against them, has the right to carry out their business or administer or dispose of their assets (irrespective of whether or not it exists in Japan; the same applies in Article 66 and Article 81, paragraph (1)).

(2)If a rehabilitation proceeding is commenced, the debtor subject to rehabilitation proceedings has the obligation, vis-a-vis creditors, to exercise the right referred to in the preceding paragraph and conduct rehabilitation proceedings in a fair and sincere manner.

(3)The provisions of the preceding two paragraphs do not apply where a disposition under the provisions of Article 64, paragraph (1) is made.

Article 39(1)If an order to commence rehabilitation proceedings is made, filing a petition to commence bankruptcy proceedings, commence rehabilitation proceedings or commence special liquidation, enforcing compulsory execution based on a rehabilitation claim or disposition of foreign tax delinquency based on a rehabilitation claim against the assets of the debtor subject to rehabilitation proceedings, or filing a petition for an asset disclosure procedure based on a rehabilitation claim is not allowed, and the bankruptcy proceedings, the procedure for compulsory execution based on a rehabilitation claim and disposition of foreign tax delinquency based on a rehabilitation claim and the asset disclosure procedure based on a rehabilitation claim , which have already been initiated against the assets of the debtor subject to rehabilitation proceedings, are stayed, and the special liquidation proceedings cease to be effective.

(2)If the court finds it unlikely to cause hindrance to rehabilitation, upon the petition of the debtor subject to rehabilitation proceedings, etc. or by its own authority, it may order the continuation of the procedure for compulsory execution based on a rehabilitation claim, etc. or disposition of foreign tax delinquency based on a rehabilitation claim, which has been stayed pursuant to the provisions of the preceding paragraph, and if it finds it necessary for rehabilitation, upon the petition of the debtor ubject to rehabilitation proceedings, etc. or by its own authority, may order the revocation of the stayed procedure for compulsory execution based on a rehabilitation claim or disposition of foreign tax delinquency based on a rehabilitation claim, while requiring or not requiring the provision of security.

(3)If an order to commence rehabilitation proceedings is made, the following claims are common benefit claims:

(4)If an order to commence rehabilitation proceedings is made, the prescription for a fine, petty fine and collection of equivalent value does not run until the rehabilitation proceedings are closed (when an order of confirmation of the rehabilitation plan is made, the prescription does not run until the payment period specified in the rehabilitation plan as prescribed in Article 181, paragraph (2) expires (or until payment based on the rehabilitation plan is completed or the rehabilitation plan is revoked, if these events occur prior to the expiration of the period)); provided, however, that this does not apply where the claim for the fine, petty fine or collection of equivalent value in question is a common benefit claim.

Article 40(1)If an order to commence rehabilitation proceedings is made, any action relating to the assets of the debtor subject to rehabilitation proceedings and also relating to a rehabilitation claim is discontinued.

(2)If the rehabilitation proceedings are closed before the action prescribed in the preceding paragraph is substituted pursuant to the provisions of Article 107, paragraph (1), Article 109, paragraph (2) (including as applied mutatis mutandis pursuant to the second sentence of Article 113, paragraph (2)) or Article 213, paragraph (5) (including as applied mutatis mutandis pursuant to Article 219, paragraph (2)), the debtor subject to rehabilitation proceedings automatically substitutes the action.

(3)The provisions of the preceding two paragraphs apply mutatis mutandis to a case relating to the assets of the debtor subject to rehabilitation proceedings and also relating to a rehabilitation claim, which is pending before an administrative agency at the time to commence rehabilitation proceedings.

Article 40-2(1)If an action filed by a creditor in rehabilitation proceedings pursuant to the provisions of Article 423 or 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 is pending at the time to commence of rehabilitation proceedings, the respective action is discontinued.

(2)The debtor subject to rehabilitation proceedings, etc. may substitute for a party in the action discontinued pursuant to the provisions of the preceding paragraph, which is filed by a creditor in rehabilitation proceedings pursuant to the provisions of Article 423 of the Civil Code. In this case, a petition for the substitution in an 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 creditor in rehabilitation proceedings is classed as a common benefit claim.

(4)If the rehabilitation proceedings are closed after the action prescribed in paragraph (2) was subject to substitution under the provisions of the same paragraph, the action will be discontinued except where it has been discontinued pursuant to the provisions of Article 68, paragraph (2) as applied mutatis mutandis pursuant to paragraph (4) of the same Article.

(5)In the case referred to in the preceding paragraph, the creditor in rehabilitation proceedings must substitute for a party in the action. In this case, a petition for the substitution in an action may also be filed by the opponent.

(6)If the rehabilitation proceedings are closed after the action prescribed in paragraph (2) was discontinued pursuant to the provisions of Article 68, paragraph (2) as applied mutatis mutandis pursuant to paragraph (4) of the same Article, notwithstanding the provisions of paragraph (3) of the same Article as applied mutatis mutandis pursuant to paragraph (4) of the same Article, the creditor in rehabilitation proceedings must substitute for a party in the action. In this case, a petition for the substitution in the action may also be filed by the opponent.

(7)If the rehabilitation proceedings are closed before the action discontinued under the provisions of paragraph (1) is substituted pursuant to the provisions of paragraph (2) or Article 140, paragraph (1), the creditor in rehabilitation proceedings or bankruptcy trustee automatically substitutes the action.

Article 41(1)If the court finds it necessary after the commencement of rehabilitation proceedings, it may require the debtor subject to rehabilitation proceedings, etc. to obtain permission of the court in order to conduct the following acts:

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

Article 42(1)After the commencement of rehabilitation proceedings, the debtor subject to rehabilitation proceedings must obtain permission of the court in order to perform the following acts. In this case, the court may grant permission only when it finds it necessary for the rehabilitation of the business of the debtor subject to rehabilitation proceedings:

(2)If granting the permission referred to in the preceding paragraph, the court must hear opinions of known creditors in rehabilitation proceedings (in cases where the debtor subject to rehabilitation proceedings, at the time of commencement of rehabilitation proceedings, is unable to pay their debts in full with their assets with regard to claims that take preference over consensually-subordinated rehabilitation claims, the holders of the consensually-subordinated rehabilitation claims are excluded). In this case, if there is a creditors committee prescribed in Article 117, paragraph (2), hearing the opinions of the committee will be sufficient.

(3)If granting the permission referred to in paragraph (1), the court must hear the opinions of the labor union, etc.

(4)The provision of paragraph (2) of the preceding Article applies mutatis mutandis to any act conducted without the permission referred to in paragraph (1).

Article 43(1)If the debtor subject to rehabilitation proceedings that is a stock company, after the commencement of rehabilitation proceedings, is unable to pay its debts in full with its assets, the court, upon the petition of the debtor subject to rehabilitation proceedings, etc., may grant permission in lieu of approval based on a resolution at a shareholders meeting prescribed in Article 467, paragraph (1) of the Companies Act with regard to the acts listed in paragraph (1), item (i) to item (ii)-2 of that Article (hereinafter referred to as the "transfer of the business" in this paragraph and paragraph (8)) relating to the debtor subject to rehabilitation proceedings; provided, however, that this applies only when that transfer of the business is necessary for the continuation of the business.

(2)If an order of permission referred to in the preceding paragraph (hereinafter referred to as a "substituted permission" in this Article) is made, the written judgment must be served upon the debtor subject to rehabilitation proceedings, etc., and a document stating the outline of the order must be served upon shareholders.

(3)An order of substituted permission becomes effective as of the time when the service to the debtor subject to rehabilitation proceedings, etc. under the provisions of the preceding paragraph is made.

(4)Service to shareholders under the provisions of paragraph (2) may be made to a shareholder's address specified or recorded in the shareholder registry or any other place which a shareholder has notified the debtor subject to rehabilitation proceedings of, by sending the necessary documents by ordinary mail or by correspondence delivery services prescribed in Article 2 paragraph (2) of the Act on Correspondence Delivery by Private Business Operators that are provided by a general correspondence delivery operator prescribed in paragraph (6) of that Article or specified correspondence delivery service provider prescribed in paragraph (9) of that Article.

(5)If service has been made under the provisions of the preceding paragraph, the service is deemed to have been made at the time when the postal item or the letter prescribed in Article 2, paragraph (3) of the Act on Correspondence Delivery by Private Business Operators (hereinafter referred to as a "postal items, etc.") sent thereby should have normally arrived.

(6)A shareholder may file an immediate appeal against an order of substituted permission.

(7)The immediate appeal referred to in the preceding paragraph does not have the effect of stay of execution.

(8)The provisions of Article 469 and Article 470 of the Companies Act do not apply where the transfer of the business relating to the debtor subject to rehabilitation proceedings is conducted with substituted permission.

Article 44(1)If a creditor in rehabilitation proceedings has acquired a right based on a rehabilitation claim after the commencement of rehabilitation proceedings with respect to the assets of the debtor subject to rehabilitation proceedings, if it is not by way of the act conducted by the debtor subject to rehabilitation proceedings (or a trustee or the debtor subject to rehabilitation proceedings if any trustee is appointed), the creditor in rehabilitation proceedings may not assert the acquisition of the right as effective in relation to the rehabilitation proceedings.

(2)A right acquired on the date to commence rehabilitation proceedings is presumed to have been acquired after the commencement of rehabilitation proceedings.

Article 45(1)A registration which is made with respect to real assets or a vessel after the commencement of rehabilitation proceedings based on a cause of registration that occurred prior to the commencement of rehabilitation proceedings or a provisional registration under the provisions of Article 105, item (i) of the Real Property Registration Act (Act No. 123 of 2004) may not be asserted as effective in relation to the rehabilitation proceedings; provided, however, that this does not apply to a registration or provisional registration made by a person entitled to demand registration, without knowledge of the commencement of rehabilitation proceedings.

(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 an enterprise mortgage.

Article 46(1)If a rehabilitation proceeding is commenced against the debtor subject to rehabilitation proceedings who 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 creditor in rehabilitation proceedings.

(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 things or securities.

Article 47For the purpose of application of the provisions of the preceding two Articles, the absence of knowledge of the commencement of rehabilitation proceedings will be presumed prior to a public notice made under the provisions of Article 35, paragraph (1) (hereinafter referred to as a "public notice of the commencement of rehabilitation proceedings"), and the existence of knowledge of the commencement of rehabilitation proceedings will be presumed after a public notice of the commencement of rehabilitation proceedings.

Article 48(1)If the debtor subject to rehabilitation proceedings holds a property right jointly with one or more other persons, if a rehabilitation proceeding is commenced, the debtorsubject to rehabilitation proceedings, etc. may make a claim for division of the assets 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 co-ownership interest in the assets of the debtor subject to rehabilitation proceedings by paying reasonable compensation.

Article 49(1)If both the debtor subject to rehabilitation proceedings and their counter party under a bilateral contract have not yet completely performed their obligations by the time of commencement of rehabilitation proceedings, the debtor subject to rehabilitation proceedings, etc. may cancel the contract or may perform the obligation of the debtor subject to rehabilitation proceedings and request the counter party to perform their obligation.

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

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

(4)If the obligation of the debtor subject to rehabilitation proceedings is to be performed pursuant to the provisions of paragraph (1), the claim held by the counter party is a common benefit claim.

(5)The provisions of Article 54 of the Bankruptcy Act apply mutatis mutandis where 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 replaced with "creditor in rehabilitation proceedings"; in paragraph (2) of the same Article, the term "bankrupt" is replaced with "debtor subject to rehabilitation proceedings," the term "bankruptcy estate" is replaced with "assets of debtor subject to rehabilitation proceedings," and the term "a holder of a claim on the estate" is replaced with "holder of a common benefit claim."

Article 50(1)The counter party to a bilateral contract who has an obligation to provide continuous performance to the debtor subject to rehabilitation proceedings, after the commencement of rehabilitation proceedings, may not refuse to perform the obligation on the grounds that no payment is made with regard to the rehabilitation claim arising from the performance provided prior to the filing of a petition to commence rehabilitation proceedings.

(2)A claim arising from the performance that is provided by the counter party to a bilateral contract referred to in the preceding paragraph after the filing of a petition to commence rehabilitation proceedings and prior to the commencement of rehabilitation proceedings (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 is included) is a common benefit claim.

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

Article 51The provisions of Article 56, Articles 58 and 59 of the Bankruptcy Act apply mutatis mutandis where a rehabilitation proceeding commences. In this case, in Article 56, paragraph (1) of the same Act, the phrase "Article 53, paragraphs (1) and (2)" is replaced with "Article 49, paragraphs (1) and (2) of the Civil Rehabilitation Act," and the term "bankrupt" is replaced with "debtor subject to rehabilitation proceedings"; in Article 56, paragraph (2) of the same Act, the term "priority claim on the bankruptcy estate" is replaced with "common benefit claim"; in Article 58, paragraph (1) of the same Act, the phrase "commencement of bankruptcy proceedings" is replaced with "commencement of rehabilitation proceedings"; 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 replaced with "creditor in rehabilitation proceedings"; in Article 59, paragraph (1) of the same Act, the term "bankruptcy proceedings" is replaced with "rehabilitation proceedings"; in Article 59, paragraph (2) of the same Act, the phrase "The claim under the provisions of the preceding paragraph belongs to the bankruptcy estate if it is held by the bankrupt or be a bankruptcy claim if it is held by the counter party." is replaced with "The claim under the provisions of the preceding paragraph is a rehabilitation claim if it is held by the counter party."

Article 52(1)The commencement of rehabilitation proceedings does not affect a right to segregate, from the debtor subject to rehabilitation proceedings, assets that do not belong to the debtor subject to rehabilitation proceedings.

(2)The provisions of Article 63 and Article 64 of the Bankruptcy Act apply mutatis mutandis where a rehabilitation proceeding is commenced. In this case, in Article 63, paragraph (1) of the same Act, the phrase "order to commence bankruptcy proceedings" is replaced with "order to commence rehabilitation proceedings"; in the proviso to Article 63, paragraph (1) and Article 64 of the same Act, the term "a bankruptcy trustee" is replaced with "the debtor subject to rehabilitation proceedings (or a trustee if any trustee is appointed)"; in Article 63, paragraph (2) of the same Act, the phrase "Article 53, paragraphs (1) and (2)" is replaced with "Article 49, paragraphs (1) and (2) of the Civil Rehabilitation Act"; in Article 63, paragraph (3) of the same Act, the term "paragraph (1)" is replaced with "the preceding two paragraphs," and the term "the same paragraph" is replaced with "paragraph (1)"; in Article 64, paragraph (1) of the same Act, the term "bankrupt" is replaced with "debtor subject to rehabilitation proceedings," and the phrase "commencement of bankruptcy proceedings" is replaced with "commencement of rehabilitation proceedings."

Article 53(1)A person who has any security interest (meaning a special statutory lien, pledge, mortgage, or a right of retention under the provisions of the Commercial Code or the Companies Act; the same applies in paragraph (3)) that exists, at the time of commencement of rehabilitation proceedings, on the assets of the debtor subject to rehabilitation proceedings, has a right of separate satisfaction over the assets that are the subject matter of the security interest.

(2)A right of separate satisfaction may be exercised without going through rehabilitation proceedings.

(3)If assets that are the subject matter of a security interest no longer belongs to the assets of the debtor subject to rehabilitation proceedings due to sale by private contract by the debtor subject to rehabilitation proceedings, etc. or for any other reason, the person who has the security interest, if it still exists, also has a right of separate satisfaction over the assets that are the subject matter of the security interest.

Article 54(1)If a petition to commence rehabilitation proceedings is filed, the court, when it finds it necessary, upon the petition of an interested person or by its own authority, may make a disposition to order supervision by a supervisor.

(2)If making the disposition referred to in the preceding paragraph (hereinafter referred to as a "supervision order"), in the supervision order, the court must appoint one or more supervisors and designate acts that the debtor subject to rehabilitation proceedings may not conduct without obtaining their consent.

(3)A corporation may serve as a supervisor.

(4)Any act conducted without the supervisor's consent prescribed in paragraph (2) is void; provided, however, that this may not be asserted against a third party which has acted in good faith.

(5)The court may change or revoke a supervision order.

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

(7)The immediate appeal referred to in the preceding paragraph does not have the effect of stay of execution.

Article 55(1)The court, when it has issued a supervision order, must make a public notice to that effect. The same applies where the court makes an order to change or revoke a supervision order.

(2)If a supervision order is issued, an order under the provisions of paragraph (5) of the preceding Article is made, and a judicial decision on the immediate appeal referred to in paragraph (6) of the same Article is made, the written judgment must be served upon the parties concerned.

(3)The provisions of Article 10, paragraph (4) do not apply to the case referred to in paragraph (1).

Article 56(1)If an order to commence rehabilitation proceedings is made, the court, upon the petition of an interested person or by its own authority, may grant authority to a supervisor to exercise a right of avoidance of a specific act.

(2)A supervisor, when granted with authority pursuant to the provisions of the preceding paragraph, may receive or pay money and perform the administration and disposal of assets in the interest of the debtor subject to rehabilitation proceedings to the extent necessary for exercising the relevant authority.

(3)The provisions of Article 77, paragraphs (1) through (3) apply mutatis mutandis to a supervisor referred to in the preceding paragraph. In this case, the phrase "successor trustee" in paragraph (2) of the same Article is replaced with "successor supervisor who is granted authority to exercise a right of avoidance or trustee under the provisions of Article 56, paragraph (1)," and the phrase "successor trustee" in paragraph (3) of the same Article is replaced with "successor supervisor who is granted authority to exercise a right of avoidance, trustee under the provisions of Article 56, paragraph (1)."

(4)The court may change or revoke an order made under the provisions of paragraph (1)

(5)The court, if it finds it necessary, may require a supervisor granted with authority pursuant to the provisions of paragraph (1) to obtain permission of the court in order to file an action, make a settlement or conduct any other act designated by the court.

(6)The provisions of Article 41, paragraph (2) apply mutatis mutandis to any act conducted by a supervisor without the permission referred to in the preceding paragraph.

Article 57(1)Supervisors are supervised by the court.

(2)The court, upon the petition of an interested person or by its own authority, may dismiss a supervisor if the supervisor does not appropriately supervise the administration of the business and assets of the debtor subject to rehabilitation proceedings, or there are any other material reasons. In this case, the court must interrogate the supervisor.

Article 58If there are two or more supervisors, they perform their duties jointly; provided, however, that they may perform their duties independently or divide the duties among themselves with the permission of the court.

Article 59(1)A supervisor may request the following persons to report on the status of the business and assets of the debtor subject to rehabilitation proceedings, or may inspect the books, documents and any other items of the debtor subject to rehabilitation:

(2)The provisions of the preceding paragraph apply mutatis mutandis to a person who was any of the persons listed in the items of the same paragraph (excluding item (i)).

(3)A supervisor, when necessary in order to perform their duties, may request a subsidiary company, etc. (meaning a corporation specified in each of the following items for the categories listed in the respective items; the same applies in the following paragraph) of the debtor subject to rehabilitation proceedings to report on the status of its business and assets, or may inspect its books, documents and any other items:

(4)If a subsidiary company, etc. of the debtor subject to rehabilitation proceedings (limited to one that is a person other than a stock company; hereinafter the same applies in this paragraph) independently holds, or the debtor subject to rehabilitation proceedings and its subsidiary company, etc. jointly hold the majority of voting rights of all shareholders of another stock company, for the purpose of application of the provisions of the preceding paragraph, the relevant other stock company is a subsidiary company of the debtor subject to rehabilitation proceedings.

Article 60(1)A supervisor must perform their duties with the due care of a prudent manager.

(2)If a supervisor fails to take the due care referred to in the preceding paragraph, the supervisor is jointly and severally liable to compensate damage to any interested person.

Article 61(1)A supervisor may receive advance payments of expenses as well as remuneration determined by the court.

(2)A supervisor must obtain permission of the court in order to accept any claims against the debtor subject to rehabilitation proceedings or any shares of the debtor subject to rehabilitation proceedings or any other contributions to the debtor subject to rehabilitation proceedings, or assign these.

(3)A supervisor may not receive payment of expenses and remuneration if they have conducted any act prescribed in the preceding paragraph without obtaining the permission referred to in the same paragraph.

(4)An immediate appeal may be filed against an order made pursuant to the provisions of paragraph (1).

Article 62(1)If a petition to commence rehabilitation proceedings is filed, the court, if it finds it necessary, upon the petition of an interested person or by its own authority, may make a disposition to order an examiner to conduct an examination.

(2)If making the disposition referred to in the preceding paragraph (hereinafter referred to as an "examination order"), the court must in the examination order appoint one or more examiners and specify the particulars that the examiners are to examine and the period during which they should report the results of the examination 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 referred to 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 referred to in the same paragraph are made, the written judgments are served upon the parties concerned.

Article 63The provisions of Article 54, paragraph (3), Article 57, the main clause of Article 58, and Articles 59 through 61 apply mutatis mutandis to an examiner.

Article 64(1)If the debtor subject to rehabilitation proceedings (limited to a corporation; hereinafter the same applies in this paragraph) administers and disposes of its assets in an inappropriate manner or the court otherwise finds it particularly necessary for the rehabilitation of the business of the debtor subject to rehabilitation proceedings, the court, upon the petition of an interested person or by its own authority, may make a disposition, upon making an order to commence rehabilitation proceedings or after making the order, to order that the business and assets of the debtor subject to rehabilitation proceedings be administered by a trustee.

(2)If making a disposition referred to in the preceding paragraph (hereinafter referred to as an "administration order"), the court must appoint one or more trustees in the administration order.

(3)If issuing an administration order, the court must interrogate the debtor subject to rehabilitation proceedings; provided, however, that this does not apply if there are pressing circumstances.

(4)The court may change or revoke an administration order.

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

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

Article 65(1)The court, when it has issued an administration order, must make a public notice of the following particulars, except in the cases prescribed in the following paragraph:

(2)The court, if it has issued an administration order upon making an order to commence rehabilitation proceedings, must also include the particulars listed in the preceding paragraph in the public notice of the commencement of rehabilitation proceedings.

(3)If the court has made an order to change or revoke an administration order, it must make a public notice to that effect.

(4)If an administration order is issued, an order referred to in the preceding paragraph is made, and a judicial decision on the immediate appeal referred to in paragraph (5) of the same Article is made, the written judgment must be served upon the parties concerned.

(5)A notice must be given to known possessors of assets, etc. with regard to, if an administration order is issued, the particulars listed in paragraph (1), or if an order referred to in paragraph (3) is made or where an order to revoke the order to commence rehabilitation proceedings has become final and binding after an administration order was issued, that effect.

(6)The provisions of Article 10, paragraph (4) do not apply in the case referred to in paragraph (1).

Article 66If an administration order is issued, the right to carry out the business of the debtor subject to rehabilitation proceedings and to administer and dispose of the assets of the debtor subject to rehabilitation proceedings are vested exclusively in a trustee.

Article 67(1)If an administration order is issued, in an action relating to the assets of the debtor subject to rehabilitation proceedings, a trustee is to stand as a plaintiff or defendant.

(2)If an administration order is issued, any action relating to the assets of the debtor subject to rehabilitation proceedings in which the debtor subject to rehabilitation proceedings stands as a party will be discontinued. The same applies to an action referred to in Article 145, paragraph (1) in which a creditor in rehabilitation proceedings stands as a party.

(3)A trustee may substitute in the action discontinued pursuant to the provisions of the preceding paragraph which does not relate to any rehabilitation claim (excluding those prescribed in Article 40-2, paragraph (2) which is subject to substitution pursuant to the provisions of Article 40-2, paragraph (2)). In this case, a petition for the substitution in an action may also be filed by the opponent.

(4)An action discontinued pursuant to the provisions of paragraph (2), which relates to a rehabilitation claim and is initiated under the provisions of Article 106, paragraph (1), Article 109, paragraph (1) or the first sentence of Article 113, paragraph (2) or subject to substitution under the provisions of Article 107, paragraph (1) or Article 109, paragraph (2) (including as applied mutatis mutandis pursuant to the second sentence of Article 113, paragraph (2)), or which is prescribed in Article 40-2, paragraph (2) and subject to substitution pursuant to the provisions of Article 40-2, paragraph (2), must be subject to substitution by a trustee. In this case, a petition for the substitution in an action may also be filed by the opponent.

(5)In the cases referred to in the preceding two paragraphs, the opponent's claim for court costs against the debtor subject to rehabilitation proceedings or the creditor in rehabilitation proceedings referred to in the second sentence of paragraph (2) is a common benefit claim.

Article 68(1)If the rehabilitation proceedings are closed before the action discontinued under the provisions of paragraph (2) of the preceding Article is substituted pursuant to the provisions of paragraph (3) or paragraph (4) of the same Article, the debtor subject to rehabilitation proceedings automatically substitutes the action (excluding one prescribed in Article 40-2, paragraph (2) which is discontinued pursuant to the provisions of paragraph (3) of the same Article; the same applies in the following paragraph).

(2)If the rehabilitation proceedings are closed, any action relating to the assets of the debtor subject to rehabilitation proceedings in which a trustee stands as a party is discontinued.

(3)The debtor subject to rehabilitation proceedings must substitute for a party in the action discontinued under the provisions of the preceding paragraph (excluding one referred to in Article 137, paragraph (1) in cases where rehabilitation proceedings are closed as a result of an order of disconfirmation of the rehabilitation plan, order of discontinuance of rehabilitation proceedings or order of revocation of the rehabilitation plan becoming final and binding). In this case, a petition for the substitution in the action may also be filed by the opponent.

(4)The provisions of paragraph (1) apply mutatis mutandis where an order to revoke an administration order becomes final and binding before there is a substitution under the provisions of paragraph (3) or (4) of the preceding Article, and the provisions of the preceding two paragraphs apply mutatis mutandis where an order to revoke an administration order becomes final and binding. In this case, in paragraph (1), the phrase "paragraph (2) of the preceding Article" is replaced with "the second sentence of paragraph (2) of the preceding Article," and the phrase "action (excluding one prescribed in Article 40-2, paragraph (2) which is discontinued pursuant to the provisions of paragraph (3) of the same Article; the same applies in the following paragraph)" is replaced with "action."

(5)The provisions of paragraph (3) apply mutatis mutandis to the action discontinued under the provisions of the second sentence of paragraph (2) of the preceding Article in cases where an order to revoke an administration order becomes final and binding before there is a substitution under the provisions of paragraph (3) of the same Article. In this case, the term "debtor subject to rehabilitation proceedings" in paragraph (3) is replaced with "creditor in rehabilitation proceedings referred to in the second sentence of paragraph (2) of the preceding Article."

Article 69The provisions of Article 67, paragraphs (2) through (5) and the preceding Article apply mutatis mutandis to a case relating to the assets of the debtor subject to rehabilitation proceedings that is pending before the administrative agency at the time when an administration order is issued.

Article 70(1)If there are two or more trustees, they perform their duties jointly; provided, however, that with permission of the court, they may perform their duties independently or divide the duties among themselves.

(2)If there are two or more trustees, it is sufficient that a manifestation of intention by a third party be made to any one of them.

Article 71(1)A trustee, if necessary, may on their own responsibility, appoint one or more trustee representatives, in order to have them perform their duties.

(2)The appointment of a trustee representative referred to in the preceding paragraph must require permission of the court.

Article 72A trustee must commence the administration of the business and assets of the debtor subject to rehabilitation proceedings immediately after assuming office.

Article 73(1)If the court finds it necessary in order for a trustee to perform their duties, may commission a person engaged in the delivery of correspondence to deliver, to a trustee, a postal item, etc. that is addressed to the debtor subject to rehabilitation proceedings.

(2)The court, upon the petition of the debtor subject to rehabilitation proceedings or by its own authority, may cancel or change the commission prescribed in the preceding paragraph, after hearing the opinions of a trustee.

(3)Upon the closing of rehabilitation proceedings, the court must cancel the commission prescribed in paragraph (1). The same applies when an administration order is revoked.

(4)The debtor subject to rehabilitation proceedings or a trustee may file an immediate appeal against an order made under the provisions of paragraph (1) or (2) and a judicial decision to dismiss without prejudice the petition referred to in paragraph (2).

(5)The immediate appeal referred to in the preceding paragraph filed against an order made under the provisions of paragraph (1) does not have the effect of a stay of execution.

Article 74(1)A trustee, upon receiving postal item, etc. addressed to the debtor subject to rehabilitation proceedings, may open it and view its contents.

(2)The debtor subject to rehabilitation proceedings may request a trustee who received the postal item, etc. referred to in the preceding paragraph to let them inspect the relevant postal item, etc., or deliver it to them if the postal item, etc. does not relate to the assets of the debtor subject to rehabilitation proceedings.

Article 75(1)A trustee may not accept the assets of the debtor subject to rehabilitation proceedings or assign their own assets to the debtor subject to rehabilitation proceedings, or conduct any other transaction with the debtor subject to rehabilitation proceedings on their own or on a third party's behalf without the permission of the court.

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

Article 76(1)A juridical act conducted by a debtor subject to rehabilitation proceedings after the issuance of an administration order with respect to the assets of the debtor subject to rehabilitation proceedings may not be asserted as effective in relation to the rehabilitation proceedings; provided, however, that this does not apply if the other party did not know, at the time of that act, the fact that an administration order was issued.

(2)Payment made to the debtor subject to rehabilitation proceedings after the issuance of an administration order without knowledge of the issuance may also be asserted as effective in relation to the rehabilitation proceedings.

(3)Payment made to the debtor subject to rehabilitation proceedings after the issuance of an administration order with knowledge of the issuance may be asserted as effective in relation to the rehabilitation proceedings only to the extent that the assets of the debtor subject to rehabilitation proceedings have been enriched.

(4)The provisions of Article 47 apply mutatis mutandis for the purpose of the application of the provisions of the preceding three paragraphs. In this case, the phrase "public notice made under the provisions of Article 35, paragraph (1) (hereinafter referred to as a "public notice of the commencement of rehabilitation proceedings")" is replaced with "public notice made under the provisions of Article 65, paragraph (1) (or a public notice made under the provisions of Article 35, paragraph (1) if an administration order is issued upon making an order to commence rehabilitation proceedings)."

Article 76-2If an administration order is issued and the debtor subject to rehabilitation proceedings is a corporation, its director, company director, executive officer, inspector, company auditor, liquidator or any other person equivalent thereto may not claim remuneration from the debtor subject to rehabilitation proceedings.

Article 77(1)A trustee, upon the termination of their office, must submit a report of account to the court without delay.

(2)In the case referred to in the preceding paragraph, if there is a vacancy in the office of a trustee, the report of account referred to in the same paragraph, notwithstanding the provisions of the same paragraph, must be submitted by a successor trustee.

(3)Upon the termination of a trustee's office, if there are pressing circumstances, the trustee or their successor must take necessary dispositions until a successor trustee or the debtor subject to rehabilitation proceedings is able to administer assets.

(4)If an order to revoke the order to commence rehabilitation proceedings, an order of discontinuance of rehabilitation proceedings or an order of disconfirmation of the rehabilitation plan becomes final and binding or where an order of revocation of the rehabilitation plan becomes final and binding before the close of rehabilitation proceedings, a trustee, except in the case prescribed in Article 252, paragraph (6), must pay common benefit claims and claims with general priorities, and with regard to any disputed claim, must make a statutory deposit of the payment in the interest of the person who holds the claim.

Article 78The provisions of Article 54, paragraph (3), Article 57, and Articles 59 through 61 apply mutatis mutandis to a trustee, and the provisions of Article 61 apply mutatis mutandis to a trustee representative.

Article 79(1)If a petition to commence rehabilitation proceedings is filed, when the debtor subject to rehabilitation proceedings (limited to a corporation; hereinafter the same applies in this section) administers and disposes of its assets in an inappropriate manner or the court otherwise finds it particularly necessary for the continuation of the business of the debtor subject to rehabilitation proceedings, the court, upon the petition of an interested person or by its own authority, may make a disposition to order that the business and assets of the debtor subject to rehabilitation proceedings be administered by a temporary administrator until an order is made on a petition to commence rehabilitation proceedings. In this case, the provisions of Article 64, paragraph (3) apply mutatis mutandis.

(2)If making a disposition referred to in the preceding paragraph (hereinafter referred to as an "order for temporary administration"), the court must appoint one or more temporary administrators in the order for temporary administration.

(3)The provisions of the preceding two paragraphs apply mutatis mutandis where an immediate appeal referred to in Article 36, paragraph (1) is filed against an order to dismiss with prejudice on the merits a petition to commence rehabilitation proceedings.

(4)The court may change or revoke an order for temporary administration.

(5)An immediate appeal may be filed against an order for temporary administration and an order made under the provisions of the preceding paragraph.

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

Article 80(1)If it has issued an order for temporary administration, the court must make a public notice to that effect. The same applies if the court makes an order to change or revoke an order for temporary administration.

(2)If an order for temporary administration is issued, an order under the provisions of paragraph (4) of the preceding Article is made, and a judicial decision on the immediate appeal referred to in paragraph (5) of the same Article is made, the written judgment must be served upon the parties concerned.

(3)The provisions of Article 10, paragraph (4) not apply to the case referred to in paragraph (1).

Article 81(1)If an order for temporary administration is issued, the right to carry out the business of the debtor subject to rehabilitation proceedings and to administer and dispose of the assets of the debtor subject to rehabilitation proceedings is vested exclusively in a temporary administrator; provided, however, that a temporary administrator must obtain permission of the court in order to conduct any act that does not fall within the scope of the ordinary business of the debtor subject to rehabilitation proceedings.

(2)Any act conducted without the permission referred to in the proviso to the preceding paragraph is to be void; provided, however, that this may not be asserted against a third party which has acted in good faith.

(3)The provisions of Article 41 apply mutatis mutandis to a temporary administrator.

Article 82(1)A temporary administrator may on their own responsibility appoint one or more representative temporary administrators, if necessary, in order to perform their duties.

(2)The appointment of a representative temporary administrator referred to in the provisions of the preceding paragraph requires permission of the court.

Article 83(1)The provisions of Article 54, paragraph (3), Article 57, Articles 59 through 61, Article 67 (1), Article 70, Article 72, Articles 74 through 76, and Article 77, paragraphs (1) through (3) apply mutatis mutandis to a temporary administrator, and the provisions of Article 61 apply mutatis mutandis to a representative temporary administrator. In this case, the phrase "public notice made under the provisions of Article 65, paragraph (1) (or a public notice made under the provisions of Article 35, paragraph (1) in cases where an administration order is issued upon making an order to commence rehabilitation proceedings)" in the second sentence of Article 76, paragraph (4) is replaced with "public notice made under the provisions of Article 80, paragraph (1)," the term "successor trustee" in Article 77, paragraph (2) is replaced with "successor temporary administrator," and the term "successor trustee" in paragraph (3) of the same Article is replaced with "successor temporary administrator, trustee. "

(2)The provisions of Article 67, paragraphs (2), (3) and (5) apply mutatis mutandis where a temporary administration order is issued, and the provisions of Article 68, paragraphs (1) through (3) apply mutatis mutandis where a temporary administration order ceases to be effective.

(3)The provisions of Article 67, paragraphs (2), (3) and (5) and Article 68, paragraphs (1) through (3) apply mutatis mutandis to a case relating to the assets of the debtor subject to rehabilitation proceedings that is pending before an administrative agency at the time when an order for temporary administration is issued. In this case, the phrase "when the rehabilitation proceedings are closed" in Article 68 paragraphs (1) and (2) is replaced with "when an order for temporary administration ceases to be effective."

(4)The provisions of Article 76-2 apply, where an order for temporary administration is issued and the debtor subject to rehabilitation proceedings is a corporation, to its director, company director, executive officer, inspector, company auditor, liquidator or any other person equivalent thereto.

Article 84(1)A claim on assets arising against a debtor subject to rehabilitation proceedings from a cause that has occurred before the commencement of rehabilitation proceedings (excluding one that is a common benefit claim or claim with general priority; the same applies in the following paragraph) is classed as a rehabilitation claim.

(2)The following claims are also classed as rehabilitation claims:

Article 85(1)With regard to a rehabilitation claim, after the commencement of rehabilitation proceedings, it is not allowed to make or receive payments after the commencement of rehabilitation proceedings, or conduct any other acts causing the claim to be extinguished (excluding a release), unless it is provided for in a rehabilitation plan, except as otherwise provided for in this Act.

(2)If a small or medium-sized enterprise operator whose major trading partner is the debtor subject to rehabilitation proceedings, is likely to experience significant hindrance to the continuation of their business unless they receive payment of their rehabilitation claim, the court, even before an order of confirmation of the rehabilitation plan becomes final and binding, may permit payment of the claim in whole or part, upon the petition of the debtor subject to rehabilitation proceedings, etc. or by its own authority.

(3)If granting permission under the provisions of the preceding paragraph, the court must take into consideration the status of transactions between the debtor subject to rehabilitation proceedings and the small or medium-sized enterprise operator referred to in the same paragraph, the financial standing of the debtor subject to rehabilitation proceedings, the interest of any interested person, and all other related circumstances.

(4)The debtor subject to rehabilitation proceedings, etc., when requested by a creditor in rehabilitation proceedings to file the petition referred to in paragraph (2), must report to the court to that effect immediately. In this case, if the debtor subject to rehabilitation proceedings, etc. has decided not to file a petition, they must report the reason for this to the court without delay.

(5)If it would be possible to have rehabilitation proceedings progress smoothly by paying a minor rehabilitation claim promptly, or significant hindrance would be caused to the continuation of the business of the debtor subject to rehabilitation proceedings unless a small rehabilitation claim is paid promptly, the court, even before an order of confirmation of the rehabilitation plan becomes final and binding, may permit payment of the claim upon the petition of the debtor subject to rehabilitation proceedings, etc.

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

Article 85-2The debtor subject to rehabilitation proceedings, etc., if a set-off of a claim that belongs to the assets of the debtor subject to rehabilitation proceedings against a rehabilitation claim conforms to the common interests of creditors in rehabilitation proceedings, may effect the set-off with the permission of the court.

Article 86(1)A creditor in rehabilitation proceedings may participate in rehabilitation proceedings by through a rehabilitation claim that they hold.

(2)The provisions of Articles 104 through 107 of the Bankruptcy Act apply mutatis mutandis to the exercise of rights by a creditor in rehabilitation proceedings in cases where a rehabilitation proceeding is commenced. In this case, in the provisions of Articles 104 through 107 of the same Act, the phrase "commencement of bankruptcy proceedings" is replaced with "commencement of rehabilitation proceedings"; in Article 104, paragraphs (1), (3) and (4), Articles 105 and 106, and Article 107, paragraph (1) of the same Act, the term "bankruptcy proceedings" is replaced with "rehabilitation proceedings" ; the terms "bankrupt" in the provisions of Article 104, paragraphs (3) through (5) of the same Act is replaced with "debtor subject to rehabilitation proceedings"; and in paragraph (4) of the same Article, the term "bankruptcy creditor" is replaced with "creditor in rehabilitation proceedings".

(3)Notwithstanding the provisions of paragraph (1), in order to participate in rehabilitation proceedings through 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 Provisions for the Enforcement of Tax Treaties, etc.; the same applies in Article 113, paragraph (2)) is required.

Article 87(1)A creditor in rehabilitation proceedings has a voting right according to the amount specified in each of the following items for the categories of claims listed in the respective items:

(2)Notwithstanding the provisions of the preceding paragraph, a creditor in rehabilitation proceedings does not have any voting rights with regard to any of the claims listed in Article 84, paragraph (2), a claim for a fine, etc. arising prior to the commencement of rehabilitation proceedings prescribed in Article 97, item (i), and a claim for a foreign tax subject to mutual assistance.

(3)Notwithstanding the provisions of paragraph (1), if the debtor subject to rehabilitation proceedings, at the time of commencement of rehabilitation proceedings, is unable to pay their debts in full with their assets with regard to claims that take preference over consensually-subordinated rehabilitation claims, the holders of the consensually-subordinated rehabilitation claims do not have any voting rights.

Article 88A holder of a right of separate satisfaction, with regard to a claim secured by a security interest prescribed in Article 53, paragraph (1) which pertains to the right of separate satisfaction, may exercise their right as a creditor in rehabilitation proceedings only for the part of the claim for which payment cannot be received by exercising the right of separate satisfaction; provided, however, that if the claim secured by the security interest is no longer secured in whole or part after the commencement of rehabilitation proceedings, the holder of the right of separate satisfaction does not be precluded from exercising their right as a creditor in rehabilitation proceedings for the whole or part of the claim.

Article 89(1)A creditor in rehabilitation proceedings, even if they, by exercising their right against the assets of the debtor subject to rehabilitation proceedings that exists in a foreign state, have received payment of their rehabilitation claim after an order to commence rehabilitation proceedings is made, may participate in rehabilitation proceedings with regard to the whole amount of the claim as of the time before receiving the payment.

(2)The creditor in rehabilitation proceedings referred to in the preceding paragraph may not receive payment through rehabilitation proceedings until any other creditor in rehabilitation proceedings (in cases if the creditor in rehabilitation proceedings referred to in the same paragraph holds an consensually-subordinated rehabilitation claim, the person who holds another consensually-subordinated rehabilitation claim) receives payment at the same proportion as they have received payment.

(3)The creditor in rehabilitation proceedings referred to in paragraph (1) may not exercise their voting right with regard to the part of the claim for which they have received payment in the foreign state.

Article 90(1)A creditor in rehabilitation proceedings, with permission of the court, may jointly or interpedently appoint one or more representatives of creditors in rehabilitation proceedings.

(2)If the court finds it necessary in order to ensure smooth progress in rehabilitation proceedings, it may specify a reasonable period and recommend that a creditor in rehabilitation proceedings appoint a representative of the creditor in rehabilitation proceedings.

(3)A representative of a creditor in rehabilitation proceedings may perform any and all acts involved in rehabilitation proceedings in the interest of the creditor in rehabilitation proceedings who appoint them.

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

(5)The court may revoke an order of permission referred to in paragraph (1) or an order of appointment referred to in paragraph (1) of the following Article if it finds the exercise of powers by the representative of the creditor in rehabilitation proceedings to be extremely unfair.

(6)A creditor in rehabilitation proceedings may dismiss at any time the representative of the creditor in rehabilitation proceedings that they have appointed.

Article 90-2(1)If there are an extremely large number of creditors in rehabilitation proceedings who have common interest, if any of these creditors in rehabilitation proceedings, despite the recommendation made under paragraph (2) of the preceding Article, does not appoint a representative of creditors in rehabilitation proceedings within the period referred to in the same paragraph, and the court finds that the progress of rehabilitation proceedings would be hindered unless a representative of the creditors in rehabilitation proceedings is appointed, the court, on behalf of the relevant creditors in rehabilitation proceedings, may appoint a representative of the creditors in rehabilitation proceedings whom it considers suitable.

(2)If appointing a representative of creditors in rehabilitation proceedings pursuant to the provisions of the preceding paragraph, the court must obtain consent of the representative of the creditors in rehabilitation proceedings in question.

(3)If a representative of creditors in rehabilitation proceedings is appointed pursuant to the provisions of paragraph (1), the representative of creditors in rehabilitation proceedings is deemed to have been appointed by the principal (meaning the person for whom the representative of a creditor in rehabilitation proceedings is appointed pursuant to the provisions of the same paragraph; the same applies in paragraph (6)) pursuant to the provisions of paragraph (1) of the preceding Article.

(4)A representative of creditors in rehabilitation proceedings appointed pursuant to the provisions of paragraph (1) may resign with permission of the court if there are justifiable grounds.

(5)A representative of the creditor in rehabilitation proceedings appointed pursuant to the provisions of paragraph (1) may receive payment of the following from the assets of the debtor subject to rehabilitation proceedings:

(6)With regard to the relationships between the representative of the creditor in rehabilitation proceedings appointed pursuant to the provisions of paragraph (1) and the principal, the provisions of Articles 644 through 647 and Article 654 of the Civil Code apply mutatis mutandis.

Article 91(1)The court, if it is found that a creditor in rehabilitation proceedings or representative of the creditors in rehabilitation proceedings or the agent thereof has contributed to ensuring the rehabilitation of the debtor subject to rehabilitation proceedings, upon the petition of the debtor subject to rehabilitation proceedings, etc. or by its own authority, may grant permission to the effect that the expenses incurred by these persons for the administration of affairs concerned will be reimbursed, or compensation will be paid to them from the assets of the debtor subject to rehabilitation proceedings.

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

Article 92(1)If a creditor in rehabilitation proceedings owes a debt to the debtor subject to rehabilitation proceedings at the time of commencement of rehabilitation proceedings, the creditor in rehabilitation proceedings, 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 94, paragraph (1), may effect a set-off only within the period for filing a proof of claims, even if this is not provided for in a rehabilitation plan. The same applies even when the debt is subject to a due date.

(2)Where the debt owed by a creditor in rehabilitation proceedings to the debtor subject to rehabilitation proceedings at the time of commencement of rehabilitation proceedings is rent debt, the creditor in rehabilitation proceedings may effect a set-off with regard to any rent debt that is to become due after the commencement of rehabilitation proceedings (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 rehabilitation proceedings only within the period for filing a proof of claims set forth in the preceding paragraph, even if it is not provided for in a rehabilitation plan.

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

(4)The provisions of the preceding two paragraphs apply mutatis mutandis to a debt for payment of a rent payable by a superficiary or rent payable by a farming right holder.

Article 93(1)A creditor in rehabilitation proceedings may not effect a set-off in the following cases:

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

Article 93-2(1)A person who owes a debt to the debtor subject to rehabilitation proceedings may not effect a set-off in the following cases:

(2)The provisions of items (ii) through (iv) of the preceding paragraph do not apply if the acquisition of a rehabilitation claim prescribed in these provisions arose from any of the causes listed in the following items:

Article 94(1)A creditor in rehabilitation proceedings who intends to participate in rehabilitation proceedings must file a proof to the court, within a period during which proofs of rehabilitation claims should be filed as specified pursuant to the provisions of Article 34, paragraph (1) (hereinafter referred to as a "period for filing proofs claims"), with regard to the amount and cause of each rehabilitation claim, if the claim in question is a consensually-subordinated rehabilitation claim, a statement to that effect, the amount of the voting right, and any other particulars specified by the Rules of the Supreme Court.

(2)A holder of a right of separate satisfaction, beyond the particulars listed in the items of the preceding paragraph, must also file the amounts of the collateral subject to a right of separate satisfaction, and the claim for which payment is not expected to be received by exercising the right of separate satisfaction.

Article 95(1)If a creditor in rehabilitation proceedings was unable to file a proof of their rehabilitation claim within the period for filing a proof of claims due to grounds not attributable thereto, they may subsequently complete the filing of a proof only within one month after the relevant grounds cease to exist.

(2)The one-month period for subsequent completion of filing of a proof specified in the preceding paragraph may not be extended or shortened.

(3)With regard to a rehabilitation claim arising after the expiration of the period for filing a proof of claims, a proof must be filed within an unextendable period of one month after the claim arose.

(4)The filing of proof referred to in paragraphs (1) and (3) may not be made after an order to refer a proposed rehabilitation plan to a resolution is made.

(5)The provisions of paragraph (1), paragraph (2) and the preceding paragraph apply mutatis mutandis where a creditor in rehabilitation proceedings makes a change to any filed particular, which is prejudicial to the interest of other creditors in rehabilitation proceedings, due to grounds not attributable thereto.

Article 96A person who has acquired a filed rehabilitation claim may have the name of the holder of the filed claim changed, even after the expiration of the period for filing a proof of claims. The same applies to a person who has acquired a rehabilitations claim stated in a statement of approval or disapproval under the provisions of Article 101, paragraph (3).

Article 97A person who holds any of the following claims must without delay file with the court a proof of the amount and grounds for the claim in question, and if the claim in question is a claim for a foreign tax subject to mutual assistance, a statement to that effect:

Article 98Deleted

Article 99(1)A court clerk must prepare a schedule of creditors in rehabilitation proceedings with regard to filed rehabilitation claims as well as rehabilitation claims stated by the debtor subject to rehabilitation proceedings, etc. in a statement of approval or disapproval pursuant to the provisions of Article 101, paragraph (3).

(2)In the schedule of creditors in rehabilitation proceedings referred to in the preceding paragraph, for each claim, its content (including whether or not it is a consensually-subordinated rehabilitation claim; hereinafter the same applies in this Section) and cause, the amount of the voting right, the amount of the claim prescribed in Article 94, paragraph (2), and any other particulars specified by the Rules of the Supreme Court must be entered.

(3)If there are any errors in the entries in the schedule of creditors in rehabilitation proceedings, a court clerk, upon petition or by their own authority, may make a disposition to correct the statements at any time.

Article 100An investigation of rehabilitation claims by the court is conducted, with regard to the particulars prescribed in paragraph (2) of the preceding Article, based on a statement of approval or disapproval prepared by the debtor subject to rehabilitation proceedings, etc. as well as written objections made by creditors in rehabilitation proceedings and by the debtor subject to rehabilitation proceedings (limited to cases where a trustee is appointed).

Article 101(1)The debtor subject to rehabilitation proceedings, etc. must prepare a statement of approval or disapproval to state, with regard to each rehabilitation claim filed during the period for filing a proof of claims, their approval or disapproval of the content of the claim and the voting right.

(2)The debtor subject to rehabilitation proceedings, etc., with regard to a rehabilitation claim which is filed or for which a change is made to any filed particulars under the provisions of Article 95, may also state their approval or disapproval of the content of the claim and the voting right (in cases if there is a change to any filed particular, the content of the claim and the voting right as changed) in the statement of approval or disapproval referred to in the same paragraph.

(3)The debtor subject to rehabilitation proceedings, etc., if they know that there is any rehabilitation claim that has not been filed, must state, in the statement of approval or disapproval referred to in paragraph (1), what they aware of and any other particulars specified by the Rules of the Supreme Court with regard to the rehabilitation claim.

(4)If no consensually-subordinated rehabilitation claim is filed within the period for filing a proof of claims, the provisions of the preceding paragraph do not apply to any consensually-subordinated rehabilitation claim that is known to the debtor subject to rehabilitation proceedings, etc..

(5)The debtor subject to rehabilitation proceedings, etc. must submit a statement of approval or disapproval prepared pursuant to the provisions of the preceding paragraphs by the time limit set by the court prior to the period for conducting an investigation of rehabilitation claims prescribed in Article 34, paragraph (1) (hereinafter referred to as the "ordinary period for investigation").

(6)If, in the statement of approval or disapproval submitted pursuant to the provisions of the preceding paragraph, neither approval nor disapproval is stated with regard to the content of a rehabilitation claim prescribed in paragraph (1) or the voting right, it is deemed that the debtor subject to rehabilitation proceedings, etc. approves these particulars. The same applies where neither approval nor disapproval is stated in the relevant statement of approval or disapproval with regard to the content of a rehabilitation claim prescribed in paragraph (2) or the voting right.

Article 102(1)A creditor in rehabilitation proceedings who has filed a proof of their claim (hereinafter referred to as a "holder of filed rehabilitation claim") may make an objection in writing to the court, within the ordinary period for investigation, with regard to the content of a rehabilitation claim prescribed in paragraph (1) or (2) of the preceding Article or the voting right, or the content of a rehabilitation claim stated in a statement of approval or disapproval pursuant to the provisions of paragraph (3) of the same Article.

(2)The debtor subject to rehabilitation proceedings (limited to cases where a trustee is appointed) may make an objection in writing to the court, within the ordinary period for investigation, with regard to the content of the rehabilitation claim prescribed in the preceding paragraph.

(3)If an order to change the ordinary period for investigation is made, the written judgment must be served upon the debtor subject to rehabilitation proceedings, trustees, and holders of filed rehabilitation claims (if prior to the expiration of the period for filing a proof of claims, known creditors in rehabilitation proceedings).

(4)The service under the provisions of the preceding paragraph may be made by the means prescribed in Article 43, paragraph (4).

(5)If a service has been made under the provisions of the preceding paragraph, the service is deemed to have been made at the time when the postal item, etc. sent thereby should have normally arrived.

Article 103(1)The court, with regard to a rehabilitation claim which is filed or for which a change is made to any filed matter under the provision of Article 95, is to specify a period for conducting an investigation of that claim (hereinafter referred to as a "special period for investigation"); provided, however, that this do not apply if the debtor subject to rehabilitation proceedings, etc. states, in a statement of approval or disapproval, their approval or disapproval of the content of that rehabilitation claim or the voting right pursuant to the provision of Article 101, paragraph (2).

(2)In the case referred to in the main clause of the preceding paragraph, the expenses for the special period for investigation are borne by the person who holds the rehabilitation claim investigated.

(3)The debtor subject to rehabilitation proceedings, etc., with regard to a rehabilitation claim to be investigated during the special period for investigation, must prepare a statement stating their approval or disapproval of the content of the claim and the voting right, and submit it to the court by the time limit set by the court prior to the special period for investigation. In this case, the provisions of the first sentence of Article 101, paragraph (6) apply mutatis mutandis.

(4)A holder of filed rehabilitation claim and the debtor subject to rehabilitation proceedings (limited to cases where a trustee is appointed) may make an objection in writing to the court within the special period for investigation, with regard to the content of a rehabilitation claim referred to in the preceding paragraph or the voting right, or the amount of a rehabilitation claim referred to in the same paragraph, respectively.

(5)The provisions of paragraphs (3) through (5) of the preceding Article apply mutatis mutandis to the service of a written judgment where an order to specify or change the special period for investigation is made.

Article 103-2(1)In the case referred to in the main clause of paragraph (1) of the preceding Article, a court clerk must specify a reasonable period and order the person who holds the rehabilitation claim referred to in paragraph (2) of the same Article to prepay the expenses referred to in the same paragraph.

(2)The disposition made under the provisions of the preceding paragraph becomes effective when a notice thereof is given by means that are considered to be appropriate.

(3)An objection may be filed against a disposition made under the provisions of paragraph (1) within an unextendable period of one week from the day on which a notice thereof is received.

(4)The objection referred to in the preceding paragraph has the effect of stay of execution.

(5)In the case referred to in paragraph (1), if the person who holds the rehabilitation claim referred to in the same paragraph does not prepay the expenses referred to in the same paragraph, the court must by an order dismiss without prejudice the person's filing of proof of the rehabilitation claim or filing of the change of any filed particular.

(6)An immediate appeal may be filed against an order of dismissal made under the provisions of the preceding paragraph.

Article 104(1)The content of a rehabilitation claim and the amount of the voting right (in the case of a rehabilitation claim stated in a statement of approval or disapproval pursuant to the provisions of Article 101, paragraph (3), the content as stated therein) becomes determined if, in the investigation of rehabilitation claims, they are approved by the debtor subject to rehabilitation proceedings, etc. and no objection is made by any holder of a filed rehabilitation claim during the period of investigation.

(2)A court clerk must make an entry of the results of the investigation of rehabilitation claims in the schedule of creditors in rehabilitation proceedings.

(3)The entries in the schedule of creditors in rehabilitation proceedings with regard to the rehabilitation claims that become determined pursuant to the provisions of paragraph (1) have the same effect as a final and binding judgment against all creditors in rehabilitation proceedings.

Article 105(1)If, in an investigation of rehabilitation claims, the debtor subject to rehabilitation proceedings, etc. has disapproved the content of a rehabilitation claim or an objection has been made by any holders of a filed rehabilitation claim with regard to this matter, the holder of a filed rehabilitation claim who holds the rehabilitation claim in question (hereinafter referred to as the "denied or disputed rehabilitation claim"), in order to determine the content of the claim, may file a petition for assessment to the court against the debtor subject to rehabilitation proceedings, etc. as well as the relevant holders who made the objection (hereinafter referred to as the "denying or disputing party" in this Article through Article 107 and Article 109); provided, however, that this does not apply in the case referred to in Article 107, paragraph (1) and Article 109, paragraphs (1) and (2).

(2)The petition for assessment referred to in the main clause of the preceding paragraph must be filed within an unextendable period of one month from the last day of the period of investigation for the denied or disputed rehabilitation claim.

(3)If a petition for assessment referred to in the main clause of paragraph (1) is filed, the court must make an assessment decision, except where it dismisses the petition as unlawful without prejudice.

(4)An assessment decision specifies the existence or nonexistence of a denied or disputed rehabilitation claim and the content thereof.

(5)If making an assessment decision, the court must interrogate the denying or disputing parties.

(6)If a judicial decision on a petition for assessment referred to in the main clause of paragraph (1) 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 106(1)A person who disagrees with a judicial decision on a petition for assessment referred to in the main clause of paragraph (1) of the preceding Article may file an action to oppose the relevant decision within an unextendable period of one month after the day on which the person was served the decision.

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

(3)The court of the first instance with which an action referred to in paragraph (1) is filed, if it finds it necessary in order to avoid substantial detriment or delay if the rehabilitation court's jurisdiction over the rehabilitation case is based on no provisions of laws or regulations other than the provisions of Article 5, paragraph (8) or (9) (including cases if the rehabilitation court has accepted the rehabilitation case transferred thereto pursuant to the provisions of Article 7, item (iv) and the acceptance of the transferred case is based on no provisions other than the provisions of Article 7, item (iv), (b) or (c)), by its own authority, may transfer the relevant action to the district court prescribed in Article 5, paragraph (1) (or the district court prescribed in Article 5, paragraph (2) if there is no the court that corresponds to the court prescribed in Article, paragraph 5, item (1)), notwithstanding the provisions of the preceding paragraph.

(4)In an action referred to in paragraph (1), all of the denying or disputing parties, etc. must stand as defendants if it is filed by the creditor in rehabilitation proceedings who holds the denied or disputed rehabilitation claim, and the creditor in rehabilitation proceedings must stand as a defendant if it is filed by a denying or disputing party.

(5)Oral argument for an action referred to in paragraph (1) may not be commenced until the period referred to in the paragraph has expired.

(6)If two or more actions referred to in paragraph (1) are pending with respect to the same claim concurrently, oral arguments and judicial decisions of these actions must be made in a consolidated manner. In this case, the provisions of Article 40, paragraphs (1) through (3) of the Code of Civil Procedure apply mutatis mutandis.

(7)A judgment rendered with regard to an action referred to in paragraph (1), except if the action is dismissed as unlawful without prejudice, approves or changes the judicial decision referred to in the same paragraph.

Article 107(1)If an action relating to a denied or disputed rehabilitation claim is pending at the time of commencement of rehabilitation proceedings, when a creditor in rehabilitation proceedings seeks to determine the content of the claim, they must file a petition for the substitution in the action, designating all of the denying or disputing parties as the opponents.

(2)The provisions of Article 105, paragraph (2) apply mutatis mutandis to the petition referred to in the preceding paragraph.

Article 108In the proceedings for assessment based on a petition for assessment referred to in the main clause of Article 105, paragraph (1) or court proceedings of an action referred to in Article 106, paragraph (1) or court proceedings of an action that is subject to substitution under the provisions of paragraph (1) of the preceding Article, a creditor in rehabilitation proceedings may assert the content and grounds for the denied or disputed rehabilitation claim, only as entered in the schedule of creditors in rehabilitation proceedings.

Article 109(1)With regard to a denied or disputed rehabilitation claim accompanied by an enforceable title of obligation or final judgment, the denying or disputing party may assert an objection only through the court proceedings that the debtor subject to rehabilitation proceedings may carry out.

(2)If an action relating to the rehabilitation claim prescribed in the preceding paragraph is pending at the time to commence rehabilitation proceedings, if the denying or disputing party intends to assert an objection under the provisions of the same paragraph, the denying or disputing party must substitute for a party in the action in which the creditor in rehabilitation proceedings who holds the rehabilitation claim in question stands as the opponent.

(3)The provisions of Article 105, paragraph (2) apply mutatis mutandis to the assertion of an objection under the provisions of paragraph (1) or the substitution in an action under the provisions of the preceding paragraph, and the provisions of Article 106, paragraphs (5) and (6) and the preceding Article apply to the cases referred to in the preceding two paragraphs. In this case, the phrase "the period referred to in the relevant paragraph" in Article 106, paragraph (5) is replaced with "an unextendable period of one month from the last day of the period for investigation for the denied or disputed rehabilitation claim."

(4)If the assertion of an objection under the provisions of paragraph (1) or the substitution in the action under the provisions of paragraph (2) has not taken place within the period prescribed in Article 105, paragraph (2) as applied mutatis mutandis pursuant to the preceding paragraph, if the denying or disputing party is a creditor in rehabilitation proceedings, is deemed that no objection under Article 102, paragraph (1) or Article 103, paragraph (4) has been made, and if the denying or disputing party is the debtor subject to rehabilitation proceedings, etc., it is deemed that the debtor subject to rehabilitation proceedings, etc. has approved the rehabilitation claim in question.

Article 110A court clerk, upon the petition of the debtor subject to rehabilitation proceedings, etc. or a creditor in rehabilitation proceedings, must make an entry, in the schedule of creditors in rehabilitation proceedings, of the outcome of an action concerning the determination of a rehabilitation claim (in cases where an action referred to in Article 106, paragraph (1) against a judicial decision on a petition for assessment referred to in the main clause of Article 105, paragraph (1) is not filed within the period prescribed in Article 106, paragraph (1) or is dismissed without prejudice, the content of the judicial decision).

Article 111(1)A judgment made upon an action concerning the determination of a rehabilitation claim is effective against all creditors in rehabilitation proceedings.

(2)If an action referred to in Article 106, paragraph (1) against a judicial decision on a petition for assessment referred to in the main clause of Article 105, paragraph (1) is not filed within the period prescribed in Article 106, paragraph (1) or is dismissed without prejudice, the relevant judicial decision have the same effect as a final and binding judgment against all creditors in rehabilitation proceedings.

Article 112If the assets of a debtor subject to rehabilitation proceedings have been enriched from an action concerning the determination of a rehabilitation claim (including a judicial decision on a petition for assessment referred to in the main clause of Article 105, paragraph (1)), the creditor in rehabilitation proceedings who asserted an objection may claim reimbursement of court costs from the assets of the debtor subject to rehabilitation proceedings to the extent that the assets of the debtor subject to rehabilitation proceedings have been enriched.

Article 112-2(1)The proceedings for assessment based on a petition for assessment referred to in the main clause of Article 105, paragraph (1) which are pending at the time of the closing of rehabilitation proceedings are to be closed if the close of rehabilitation proceedings occurs before an order of confirmation of the rehabilitation plan becomes final and binding, and are to continue to be pending if the closing of rehabilitation proceedings occurs after an order of confirmation of the rehabilitation plan becomes final and binding.

(2)The provisions of Article 68, paragraphs (2) and (3) apply mutatis mutandis to proceedings for assessment based on a petition for assessment referred to in the main clause of Article 105, paragraph (1) in which a trustee stands as a party in cases where rehabilitation proceedings are closed after an order of confirmation of the rehabilitation plan becomes final and binding.

(3)If rehabilitation proceedings are closed after an order of confirmation of the rehabilitation plan becomes final and binding, if a judicial decision on a petition for assessment referred to in the main clause of Article 105, paragraph (1) is made after the close of rehabilitation proceedings, an action referred to in Article 106, paragraph (1) may be filed pursuant to the provisions of Article 106, paragraph (1).

(4)An action referred to in Article 106, paragraph (1) which is pending at the time of close of rehabilitation proceedings and in which the debtor subject to rehabilitation proceedings, etc. does not stand as a party is to be discontinued if the close of rehabilitation proceedings occurs before an order of confirmation of the rehabilitation plan becomes final and binding, and is to continue to be pending if the close of rehabilitation proceedings occurs after an order of confirmation of the rehabilitation plan becomes final and binding.

(5)The action pending at the time of close of rehabilitation proceedings (excluding those in which the debtor subject to rehabilitation proceedings, etc. stands as a party), which is subject to substitution under the provisions of Article 107, paragraph (1) or Article 109, paragraph (2), is discontinued if the closing of rehabilitation proceedings occurs before an order of confirmation of the rehabilitation plan becomes final and binding, and does not be discontinued if the closing of rehabilitation proceedings occurs after an order of confirmation of the rehabilitation plan becomes final and binding.

(6)If an action is discontinued pursuant to the provisions of the preceding paragraph, the provisions of Article 68, paragraph (3) apply mutatis mutandis.

Article 113(1)With regard to a claim for a fine, etc. arising prior to the commencement of rehabilitation proceedings and a claim for a foreign tax subject to mutual assistance, the provisions of Article 100 to the preceding Article do not apply.

(2)If the cause of a claim (excluding a claim for a fine, petty fine and court costs for a criminal case) filed under the provisions of Article 97 (in the case of a claim for a foreign tax subject to mutual assistance, a decision of implementation of mutual assistance) is a disposition against which a request for review, action (excluding a criminal action; the same applies in the following paragraph) or any other appeal may be filed, the debtor subject to rehabilitation proceedings, etc. may assert an objection with regard to the filed claim by a means for filing the appeal.

(3)In the case referred to in the preceding paragraph, if an action relating to the filed claim is pending at the time of commencement of rehabilitation proceedings, the debtor subject to rehabilitation proceedings, etc. who intends to assert an objection prescribed in the same paragraph must substitute for a party in the action in which the creditor in rehabilitation proceedings who holds the filed claim stands as the opponent. The same applies where a case relating to the assets of the debtor subject to rehabilitation proceedings is pending before an administrative agency with regard to the filed claim at the time of commencement of rehabilitation proceedings.

(4)The assertion of an objection under the provisions of paragraph (2) or the substitution in the action under the provisions of the preceding paragraph must be performed within an unextendable period of one month after the day on which the debtor subject to rehabilitation proceedings, etc. came to know the filing of a claim prescribed in paragraph (2).

(5)The provisions of Article 104, paragraph (2) apply mutatis mutandis to a claim which is filed pursuant to the provisions of Article 97, and the provisions of Articles 108 and 110, and Article 111, paragraph (1) apply mutatis mutandis to cases if the assertion of an objection under the provisions of paragraph (2) or the substitution in the action under the provisions of paragraph (3) has taken place.

Article 114The court must convoke a creditors meeting upon the petition of the debtor subject to rehabilitation proceedings, etc. or the creditors committee prescribed in Article 117, paragraph (2) or petition of a creditor in rehabilitation proceedings who holds a rehabilitation claim that accounts for one-tenth or more of the value of total claims held by known creditors in rehabilitation proceedings as determined by the court; provided, however, that the court may convoke a creditors meeting without these petitions if it finds it appropriate.

Article 115(1)On the date of a creditors meeting, the debtor subject to rehabilitation proceedings, a trustee, holders of filed rehabilitation claims, and any person who has assumed a debt or provided security for the purpose of rehabilitation must be summoned; provided, however, that when the order referred to in Article 34, paragraph (2) is made, holders of filed rehabilitation claims are not required to be summoned, except on the date of a creditors meeting aimed for adopting a resolution on a proposed rehabilitation plan.

(2)Notwithstanding the provisions of the preceding paragraph, not summoning holders of filed rehabilitation claims who may not exercise their voting rights is allowed.

(3)A notice of the date of a creditors meeting must be given to the labor union, etc.

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

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

Article 116Creditors meetings are directed by the court.

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

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

(3)The creditors committee may state its opinions to the court, the debtor subject to rehabilitation proceedings, etc. or a supervisor in rehabilitation proceedings.

(4)If it is found that the creditors committee has carried out activities that contribute to ensuring the rehabilitation of the debtor subject to rehabilitation proceedings, the court, upon the petition of a creditor in rehabilitation proceedings who has incurred necessary expenses for the relevant activities, may permit reimbursement of the amount of expenses which it finds reasonable to the creditor in rehabilitation proceedings from the assets of the debtor subject to rehabilitation proceedings.

(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.

Article 118(1)A court clerk, when approval is given pursuant to the provisions of paragraph (1) of the preceding Article, must without delay give a notice to the debtor subject to rehabilitation proceedings, etc. to that effect.

(2)The debtor subject to rehabilitation proceedings, etc., upon receiving the notice under the provisions of the preceding paragraph, without delay, must hear opinions of the creditors committee with regard to the particulars concerning the administration of the business and assets of the debtor subject to rehabilitation proceedings.

Article 118-2(1)The debtor subject to rehabilitation proceedings, etc., when they have submitted written reports, an inventory of assets, and balance sheets (meaning written reports, an inventory of assets or balance sheets; hereinafter the same applies in this Article) to the court pursuant to the provisions of Article 124, paragraph (2) or Article 125, paragraph (1) or (2), must also without delay submit the relevant written reports, an inventory of assets, and balance sheets. to the creditors committee.

(2)If the debtor subject to rehabilitation proceedings, etc., in the case referred to in the preceding paragraph, has filed a petition referred to in Article 17, paragraph (1), alleging that the written reports, an inventory of assets, and balance sheets in question contain a detrimental section prescribed in Article 17, paragraph (1), it is sufficient for that person to submit the written reports, an inventory of assets, and balance sheets excluding that part to the creditors committee.

Article 118-3(1)The creditors committee, when it is necessary for the interest of creditors in rehabilitation proceedings as a whole, may request the court to order that the debtor subject to rehabilitation proceedings, etc. make a report under the provisions of Article 125, paragraph (2) with regard to the status of the administration of the business and assets of the debtor subject to rehabilitation and other necessary particulars concerning the rehabilitation of the business of the debtor subject to rehabilitation proceedings.

(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 the debtor subject to rehabilitation proceedings, etc. makes a report under the provisions of Article 125, paragraph (2).

Article 124(1)A debtor subject to rehabilitation proceedings, etc., without delay after the commencement of rehabilitation proceedings (in the case of a trustee, after assuming office), must evaluate the value of any and all assets that belongs to the debtor subject to rehabilitation proceedings as of the time of commencement of rehabilitation proceedings.

(2)The debtor subject to rehabilitation proceedings, etc., when they have completed the evaluation under the provisions of the preceding paragraph, must immediately prepare an inventory of assets and balance sheets as of the time of commencement of rehabilitation proceedings, and submit these to the court.

(3)If the court finds it necessary, upon the petition of an interested person or by its own authority, it may appoint a valuator and order them to evaluate the assets of the debtor subject to rehabilitation proceedings.

Article 125(1)The debtor subject to rehabilitation proceedings, etc., must submit to the court a written report stating the following particulars without delay after the commencement of rehabilitation proceedings (in the case of a trustee, after assuming office):

(2)Beyond what is prescribed in the preceding paragraph, the debtor subject to rehabilitation proceedings, etc., as provided for by the court, must report to the court the status of the administration of the business and assets of the debtor subject to rehabilitation proceedings and any other particulars as ordered by the court.

(3)A supervisor, as provided for by the court, must report to the court the status of the administration of the business and assets of the debtor subject to rehabilitation proceedings and any other particulars as ordered by the court.

Article 126(1)At a creditors meeting convoked to report the status of the assets of the debtor subject to rehabilitation proceedings, the debtor subject to rehabilitation proceedings, etc. must report the outline of the particulars listed in the items of paragraph (1) of the preceding Article.

(2)At the creditors meeting referred to in the preceding paragraph (referred to as a "meeting for reporting the status of assets"), the court must hear opinions of the debtor subject to rehabilitation proceedings, a trustee or holders of filed rehabilitation claims with regard to the appointment of a trustee, as well as the particulars concerning the administration of the business and assets of the debtor subject to rehabilitation proceedings.

(3)At a meeting for reporting the status of assets, the labor union, etc. may state its opinions with regard to the particulars prescribed in the preceding paragraph.

Article 127(1)The following acts (excluding acts concerning the provision of security or extinguishment of debt) may be avoided in the interest of the assets of a debtor subject to rehabilitation proceedings after the commencement of rehabilitation proceedings:

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

(3)Any gratuitous act, or any onerous act that should be deemed to be equal to the act, conducted by the debtor subject to rehabilitation proceedings after, or within six months prior to suspension of payments or filing petitions, may be avoided in the interest of the assets of the debtor subject to rehabilitation proceedings after the commencement of rehabilitation proceedings.

Article 127-2(1)If a debtor subject to rehabilitation proceedings, after conducting the act of disposing of their assets, has received reasonable consideration from the other party to the relevant act, the act may be avoided in the interest of the assets of the debtor subject to rehabilitation proceedings after the commencement of the rehabilitation proceedings, 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 is presumed to have known, at the time of the act, that the debtor subject to rehabilitation proceedings had the intention of concealing or carrying out disposal as referred to item (ii) of the relevant paragraph:

Article 127-3(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 assets of the debtor subject to rehabilitation proceedings after the commencement of rehabilitation proceedings:

(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 relevant 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 relevant item, both the facts that the debtor subject to rehabilitation proceedings was unable to pay debts and that the debtor subject to rehabilitation proceedings 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 a suspension that took place within one year prior to the filing of a petition to commence rehabilitation proceedings and related proceedings), the debtor subject to rehabilitation proceedings is presumed to have been unable to pay debts.

Article 128(1)The provisions of paragraph (1), item (i) of the preceding Article do not apply where a person who has received payment of a negotiable instrument from the debtor subject to rehabilitation proceedings 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 who 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 or filing petitions had taken place, a supervisor granted authority to exercise a right of avoidance under the provisions of Article 56, paragraph (1) (hereinafter referred to as a "supervisor granted authority to avoid") or a trustee may have these persons redeem the money paid by the debtor subject to rehabilitation proceedings 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 debtor subject to rehabilitation proceedings with regard to a claim for a fine, etc. arising prior to the commencement of rehabilitation proceedings for the person who has the power to collect the claim.

Article 129(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 or filing petitions 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 or filing petitions had taken place; provided, however, that this not applies 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 becomes effective.

Article 130The exercising of a right of avoidance does not be precluded even when an act to be avoided is accompanied by an enforceable title of obligation or based on an act of execution.

Article 131Any act conducted not less than one year before the date of filing of a petition to commence rehabilitation proceedings and related proceedings (excluding the act prescribed in Article 127, paragraph (3)) may not be avoided by reason that the act was conducted after suspension of payments had taken place or while knowing the fact of suspension of payments.

Article 132(1)The exercise of a right of avoidance restores the assets of the debtor subject to rehabilitation proceedings to its original state.

(2)If an act prescribed in Article 127, paragraph (3) is avoided, if the other party did not know, at the time of the act, the fact that suspension of payments or filing petitions had taken place nor the fact that the act would prejudice any creditor in rehabilitation proceedings, it is sufficient for the other party to return the actual enrichment that the relevant party enjoys.

Article 132-2(1)If an act prescribed in Article 127, paragraph (1) or (3) or Article 127-2, 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 same item, if the debtor subject to rehabilitation proceedings, at the time of the act in question, had the intention of conducting concealing or carrying out other disposition of the assets that they received as a value for the act and the other party knew that the debtor subject to rehabilitation proceedings 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 127-2, paragraph (2), the other party is presumed to have known, at the time of the act, that the debtor subject to rehabilitation proceedings had the intention of concealing or carrying out other disposition referred to in the preceding paragraph.

(4)A supervisor granted authority to avoid or a trustee, when they intend to avoid an act prescribed in Article 127, paragraph (1) or (3) or Article 127-2, paragraph (1), in lieu of requesting return of the assets that should be returned to the assets of the debtor subject to rehabilitation proceedings pursuant to the provisions of paragraph (1) of the preceding Article, may request the other party to reimburse the amount obtained by deducting the amount that is 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 debtor subject to rehabilitation proceedings) from the value of the relevant assets to be returned.

Article 133If an act prescribed in Article 127-3, paragraph (1) is avoided, if the other party returns the performance that they have received or reimburses the value of the performance, this restores the other party's claim to its original state.

Article 134(1)In the following cases, a right of avoidance may also be exercised against any subsequent acquirers:

(2)The provisions of Article 132, paragraph (2) apply mutatis mutandis where a right of avoidance is exercised pursuant to the provisions of item (iii) of the preceding paragraph.

Article 134-2(1)If the court finds it necessary in order to secure a right of avoidance during the period after a petition to commence rehabilitation proceedings is filed until an order on the relevant petition is made, upon the petition of an interested person (or a temporary administrator if any temporary administrator is appointed) or by its own authority, the court may issue an order of provisional seizure or provisional disposition or any other necessary provisional remedy.

(2)The provisional remedy under the provisions of the preceding paragraph may be issued while requiring or not requiring the provision of security.

(3)The court, upon petition or by its own authority, may change or revoke a provisional remedy issued under the provisions of paragraph (1).

(4)An immediate appeal may be filed against a provisional remedy issued under the provisions of paragraph (1) and a judicial decision on the petition referred to in the preceding paragraph.

(5)The immediate appeal referred to 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 referred to in the same paragraph are made, the written judgements must be served upon the parties concerned. In this case, the provisions of the main clause of Article 10, paragraph (3) do not apply.

(7)The provisions of the preceding paragraphs apply mutatis mutandis where an immediate appeal referred to in Article 36, paragraph (1) is filed against an order to dismiss with prejudice on the merits a petition to commence of rehabilitation proceedings.

Article 134-3(1)If a provisional remedy under the provisions of paragraph (1) of the preceding Article (including as applied mutatis mutandis pursuant to paragraph (7) of the relevant Article) is issued, if an order to commence rehabilitation proceedings is made, a supervisor granted authority to avoid or a trustee may continue the procedure for the provisional remedy.

(2)If the procedure for a provisional remedy referred to in the preceding paragraph pursuant to the provisions of the same paragraph is not continued within one month after the order to commence rehabilitation proceedings, the provisional remedy ceases to be effective.

(3)If a supervisor granted authority to avoid, or a trustee, intends to continue the procedure for a provisional remedy referred to in paragraph (1) pursuant to the provisions of the same paragraph, if the whole or part of the security prescribed in paragraph (2) of the preceding Article (including as applied mutatis mutandis pursuant to paragraph (7) of the same Article) does not belong to the assets of the debtor subject to rehabilitation proceedings, they must substitute the whole or part of the security with another security by way of assets that belongs to the assets of the debtor subject to rehabilitation proceedings.

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

Article 135(1)A right of avoidance is exercised by a supervisor granted authority to avoid, or a trustee, by filing an action or making a request for avoidance.

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

(3)Beyond the means prescribed in paragraph (1), a trustee may also exercise a right of avoidance by raising a defense.

Article 136(1)If making a request for avoidance, the requester must make a prima facie showing of the fact constituting the grounds for 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)If making an order referred to in the preceding paragraph, the court must interrogate the other party or any subsequent acquirers.

(4)If an order upholding a request for avoidance 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.

(5)The proceedings for a request for avoidance are closed upon the close of rehabilitation proceedings.

Article 137(1)A person who 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 the order.

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

(3)A judgment rendered with regard to the action referred to in paragraph (1), except if the action is dismissed without prejudice as unlawful, approves, changes or revokes the order referred to in the same paragraph.

(4)If a judgment approving an order made under paragraph (1) becomes final and binding, the order has the same effect as a final and binding judgment. The same applies if the action referred to in the preceding paragraph is not filed within the period prescribed in the same paragraph or is dismissed without prejudice.

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

(6)The action referred to in paragraph (1) in which a supervisor granted authority to avoid stands as a party is to be concluded if rehabilitation proceedings are closed as a result of an order of revocation of the order to commence rehabilitation proceedings becoming final and binding or an order of termination of rehabilitation proceedings being made, and is to be discontinued if rehabilitation proceedings are closed as a result of an order of disconfirmation of the rehabilitation plan, order of discontinuance of rehabilitation proceedings or order of revocation of the rehabilitation plan becoming final and binding.

(7)The action referred to in paragraph (1) in which a trustee stands as a party, notwithstanding the provisions of Article 68, paragraph (2), is to be concluded if rehabilitation proceedings are closed as a result of an order of revocation of the order to commence rehabilitation proceedings becoming final and binding or an order of completion of rehabilitation proceedings being made.

Article 138(1)Notwithstanding the provisions of Article 135, paragraph (1), a supervisor granted authority to avoid, if an action is pending between the other party against whom they may exercise a right of avoidance (hereinafter referred to as the "other party" in this Article) and the debtor subject to rehabilitation proceedings, may intervene in the action as a party thereto, designating the other party as a defendant, in order to exercise the right of avoidance; provided, however, that this applies only if they make a claim regarding the right or obligation that is the subject matter of the action.

(2)If an action of avoidance in which a supervisor granted authority to avoid stands as a party (including the action referred to in paragraph (1) of the preceding Article and action was subject to substitution pursuant to the provisions of Article 140, paragraph (1)) is pending, the debtor subject to rehabilitation proceedings may intervene in the action as a party thereto, designating the other party as a defendant, in order to make a claim regarding the right or obligation that is the subject matter of the action.

(3)In the case prescribed in the preceding paragraph, the other party may, until the conclusion of the oral argument of the action in question, file another action regarding the right or obligation that is the subject matter of the relevant action, designating the debtor subject to rehabilitation proceedings as a defendant, by consolidating these actions.

(4)The provisions of Article 40, paragraphs (1) through (3) of the Code of Civil Procedure apply mutatis mutandis to the cases referred to in the preceding three paragraphs, and the provisions of Article 43 and Article 47, paragraphs (2) and (3) of the same Code apply mutatis mutandis to the application for intervention under the provisions of the paragraphs (1) and (2).

Article 139A right of avoidance may not be exercised if two years have elapsed since the date of commencement of rehabilitation proceedings (in cases where bankruptcy proceedings have been commenced prior to the date of commencement of rehabilitation proceedings, the date of commencement of bankruptcy proceedings). The same applies when 20 years have elapsed since the date of the act to be avoided.

Article 140(1)A supervisor granted authority to avoid, or a trustee, may substitute for a party in the action discontinued pursuant to the provisions of Article 40-2, paragraph (1), which is filed by a creditor in rehabilitation proceedings pursuant to the provisions of Article 424 of the Civil Code or action of avoidance or action of objection to an order upholding a request for avoidance under the provisions of the Bankruptcy Act. In this case, a petition for the substitution in 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 the creditor in rehabilitation proceedings or a bankruptcy trustee is a common benefit claim.

(3)If the rehabilitation proceedings are closed after the action prescribed in paragraph (1) was subject to substitution under the provisions of the same paragraph, the action is discontinued except where it has been discontinued pursuant to the provisions of paragraph (1) of the following Article.

(4)In the case referred to in the preceding paragraph or cases where rehabilitation proceedings are closed after the action prescribed in paragraph (1) was discontinued pursuant to the provisions of paragraph (1) of the following Article, the creditor in rehabilitation proceedings or a bankruptcy trustee must substitute in the action. In this case, a petition for the substitution in the action may also be filed by the opponent.

Article 141(1)If any of the judicial decisions listed in the following items is revoked, the action specified in the respective items is discontinued:

(2)If, after an action is discontinued pursuant to the provisions of the preceding paragraph, a supervisor is granted authority to exercise a right of avoidance pursuant to the provisions of Article 56, paragraph (1) or a trustee is appointed, the supervisor or trustee must substitute for a party in the action. In this case, a petition for the substitution in the action may also be filed by the opponent.

Article 142(1)If an order to commence rehabilitation proceedings is made against the debtor subject to rehabilitation proceedings who is a corporation, the court, if it finds it necessary, upon the petition of the debtor subject to rehabilitation proceedings, etc. or by its own authority, with regard to a claim for damages based on the liabilities of the director, company director, executive officer, inspector, company auditor, liquidator or any other person equivalent thereto of the debtor subject to rehabilitation proceedings (hereinafter referred to as "officer" in this Article through Article 145), may issue a provisional remedy upon the assets of these officers.

(2)If the court finds urgent necessity even before making an order to commence rehabilitation proceedings, upon the petition of the debtor subject to rehabilitation proceedings (or a temporary administrator if any temporary administrator is appointed) or by its own authority, the court may issue a provisional remedy referred to in the preceding paragraph.

(3)If no trustee is appointed in the case prescribed in paragraph (1) or if no temporary administrator is appointed in the case prescribed in the preceding paragraph, a creditor in rehabilitation proceedings may also file a petition referred to in paragraph (1) or the preceding paragraph.

(4)The court may change or revoke a provisional remedy issued under the provisions of paragraph (1) or (2).

(5)An immediate appeal may be filed against a provisional remedy issued under the provisions of paragraph (1) or (2) and an order made under the provisions of the preceding paragraph.

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

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

Article 143(1)If an order to commence rehabilitation proceedings is made against the debtor subject to rehabilitation proceedings who is a corporation, the court, if it finds it necessary, upon the petition of the debtor subject to rehabilitation proceedings, etc. or by its own authority, may make an assessment decision on a claim for damages based on its officer's liability.

(2)In the case prescribed in the preceding paragraph, if no trustee is appointed, a creditor in rehabilitation proceedings may also file a petition referred to in the same paragraph.

(3)If filing the petition referred to in preceding paragraph (1), the petitioner must make a prima facie showing of the fact constituting the cause of liability.

(4)If the court commences proceedings for assessment by its own authority, it must make an order to that effect.

(5)If a petition referred to in paragraph (1) is filed or an order to commence proceedings for assessment by the court's own authority is made, for the purpose of renewal of prescription, a demand by litigation is deemed to have been made.

(6)The proceedings for assessment (excluding those initiated after an assessment decision referred to in paragraph (1) is made) are closed upon the close of rehabilitation proceedings.

Article 144(1)An assessment decision referred to in paragraph (1) of the preceding Article and a judicial decision to dismiss with prejudice on the merits the petition referred to in the same paragraph must be made by an order stating the reasons therefor.

(2)If making an order referred to in the preceding paragraph, the court must interrogate the officer in question.

(3)If an assessment decision referred to in paragraph (1) of the preceding Article 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 145(1)A person who disagrees with an assessment decision referred to in Article 143, paragraph (1) may file an action to oppose, within an unextendable period of one month after the day on which the person was served the decision.

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

(3)In an action set forth in paragraph (1) (excluding an action set forth in the following paragraph), the person who has filed a petition set forth in Article 143, paragraph (1) must stand as a defendant if the action is filed by the officer in question, and the officer in question must stand as a defendant if it is filed by the person who has filed a petition set forth in Article 143, paragraph (1).

(4)In an action referred to in paragraph (1) against an assessment decision made by the court's own authority, the debtor subject to rehabilitation proceedings, etc. must stand as a defendant if the action is filed by the officer in question, and the officer in question must stand as a defendant if it is filed by the debtor subject to rehabilitation proceedings, etc.

Article 146(1)Oral arguments for an action referred to in paragraph (1) of the preceding Article may not be commenced until the period referred to in the same paragraph has expired.

(2)If two or more actions referred to in paragraph (1) of the preceding Article are pending concurrently, oral arguments and judicial decisions of these actions must be made in a consolidated manner. In this case, the provisions of Article 40, paragraphs (1) through (3) of the Code of Civil Procedure apply mutatis mutandis.

(3)A judgment rendered with regard to an action referred to in paragraph (1) of the preceding Article, except if the action is dismissed as unlawful without prejudice, approves, changes or revokes the assessment decision.

(4)A judgment that approves or changes an assessment decision, for the purpose of compulsory execution, has the same effect as a judgment to order performance.

(5)With regard to a judgment that approves or changes an assessment decision, the court in charge of the case, as provided for by Article 259, paragraph (1) of the Code of Civil Procedure, may declare provisional execution.

(6)If rehabilitation proceedings are closed, the action referred to in paragraph (1) of the preceding Article in which the debtor subject to rehabilitation proceedings, etc. does not stand as a party is discontinued. In this case, the provisions of Article 68, paragraph (3) apply mutatis mutandis.

Article 147If an action referred to in Article 145, paragraph (1) is not filed within the period referred to in the same paragraph or is dismissed without prejudice, the assessment decision has the same effect as a final and binding judgment to order performance.

Article 148(1)If there exist any security interests prescribed in Article 53, paragraph (1) (hereinafter referred to as "security interest" in this Article, the following Article, and Article 152), at the time of commencement of rehabilitation proceedings, against the assets of the debtor subject to rehabilitation proceedings, if the relevant assets are indispensable for the continuation of the business of the debtor subject to rehabilitation proceedings, the debtor subject to rehabilitation proceedings, etc. may file a petition to the court for permission for having security interests that exist on these assets be extinguished, by paying to the court the amount of money equivalent to the value of the assets.

(2)The petition for permission referred to in the preceding paragraph must be filed by means of a document stating the following particulars:

(3)If an order of permission referred to in paragraph (1) is made, the written judgment must be served, with the document referred to in the preceding paragraph (hereinafter referred to as a "written petition" in this Article and the following Article), upon the persons who hold the security interests referred to in item (iii) of the same paragraph as stated in the relevant written petition (hereinafter referred to as the "security interest holders" in this Article through Article 153). In this case, the provisions of the main clause of Article 10, paragraph (3) do not apply.

(4)A security interest holder may file an immediate appeal against an order of permission referred to in paragraph (1).

(5)If a judicial decision on the immediate appeal referred to in the preceding paragraph is made, the written judgment must be served upon security interest holders. In this case, the provisions of the main clause of Article 10, paragraph (3) do not apply.

(6)If the security interest referred to in paragraph (2), item (iii) is a revolving mortgage, if two weeks have elapsed since the day on which the revolving mortgagee received the service made under the provisions of paragraph (3), the principal to be secured by the revolving mortgage will be fixed.

(7)The provisions of Article 398-20, paragraph (2) of the Civil Code apply mutatis mutandis where a petition for permission referred to in paragraph (1) is withdrawn or the permission referred to in the same paragraph is rescinded.

Article 149(1)A security interest holder, if they have an objection to the value referred to in paragraph (2), item (ii) of the preceding Article as stated in the written petition (hereinafter referred to as the "offered price" in Articles 151 and 152), may make a request, within one month from the day on which they were served the relevant written petition, for the valuation of the assets that are the subject matter of the security interest concerned (hereinafter referred to as the "assets" in the following Article).

(2)The court that has granted the permission referred to in paragraph (1) of the preceding Article, only if there are any unavoidable grounds, upon the petition of the security interest holder, may extend the period referred to in the preceding paragraph.

(3)A case regarding a request under the provisions of paragraph (1) (hereinafter referred to as a "request for valuation" in this Article through Article 152) is subject to the jurisdiction of the rehabilitation court.

(4)A person who makes a request for valuation must prepay an amount designated by the rehabilitation court as expenses for the proceedings for the request.

(5)If prepayment of expenses prescribed in the preceding paragraph is not made, the rehabilitation court must dismiss without prejudice the request for valuation.

Article 150(1)If a request for valuation is made, the rehabilitation court, except where it dismisses the request without prejudice, must appoint a valuator and order them to value the assets.

(2)In the case referred to in the preceding paragraph, the rehabilitation court must, by an order, valuate the assets based on the valuation made by a valuator.

(3)If there are two or more security interest holders, the order referred to in the preceding paragraph must be made after the period referred to in paragraph (1) of the preceding Article (in cases if the period has been extended pursuant to the provisions of paragraph (2) of the relevant Article, the period as extended; hereinafter referred to as the "period of request" in Article 152, paragraph (1)) has expired for all security interest holders. In this case, if two or more cases of requests for valuation are pending concurrently, the judicial decisions of these cases must be made in a consolidated manner.

(4)The order referred to in paragraph (2) is also effective against a security interest holder who has not made a request for valuation.

(5)The debtor subject to rehabilitation proceedings, etc. and any security interest holder may file an immediate appeal against an order on the request for valuation.

(6)If an order on the request for valuation or a judicial decision on the immediate appeal referred to in preceding paragraph is made, the written judgment must be served upon the debtor subject to rehabilitation proceedings, etc. and the security interest holders. In this case, the provisions of the main clause of Article 10, paragraph (3) do not apply.

Article 151(1)The expenses incurred for the proceedings for a request for valuation are borne by the debtor subject to rehabilitation proceedings if the value determined by an order referred to in paragraph (2) of the preceding Article exceeds the offered price, and borne by the persons who made a request for valuation if the relevant value does not exceed the offered price; provided, however, that if the amount in excess of the offered price is less than the amount of expenses, the part of the amount of expenses which is equivalent to the amount of excess is borne by the debtor subject to rehabilitation proceedings, and the remaining part is borne by the persons who made a request for valuation.

(2)The expenses incurred for the proceedings for an immediate appeal referred to in paragraph (5) of the preceding Article is borne by the person who filed the immediate appeal.

(3)A person who holds a claim for expenses against the debtor subject to rehabilitation proceedings pursuant to the provisions of paragraph (1) has a right to receive payment of the expenses in preference to other security interest holders from the money paid under the provisions of paragraph (1) of the following Article.

(4)In the case referred to in paragraph (4) of the following Article, the expenses referred to in paragraphs (1) and (2), notwithstanding these provisions, are borne by the debtor subject to rehabilitation proceedings. In this case, a claim for expenses against the debtor subject to rehabilitation proceedings is a common benefit claim.

Article 152(1)The debtor subject to rehabilitation proceedings, etc. must pay to the court, by the time limit set by the court, money equivalent to the offered price if no request for valuation is made within the period of request or all requests for valuation are withdrawn or dismissed without prejudice, or must pay to the court, by the relevant time limit, money equivalent to the value determined by an order referred to in Article 150, paragraph (2) if the relevant order becomes final and binding.

(2)The security interests held by security interest holders are extinguished at the time when money is paid under the provisions of the preceding paragraph.

(3)If money is paid under the provisions of paragraph (1), a court clerk must commission cancellation of registrations of the security interests extinguished.

(4)If the debtor subject to rehabilitation proceedings, etc. fails to pay money under the provisions of paragraph (1), the court must rescind the permission referred to in Article 148, paragraph (1).

Article 153(1)If payment of money under the provisions of paragraph (4) of the preceding Article is made, the court, according to a distribution list, must implement liquidating distribution to security interest holders, except in the case prescribed in the following paragraph.

(2)If there is only one security interest holder or if there are two or more security interest holders and the money paid pursuant to the provisions of paragraph (1) of the preceding Article is sufficient for paying the claims secured by the security interests held by the respective holders and the expenses to be borne by the debtor subject to rehabilitation proceedings pursuant to the provisions of Article 151, paragraph (1), the court prepare a statement of delivery of the relevant money, and deliver payment money to the security interest holders and deliver any surplus to the debtor subject to rehabilitation proceedings, etc.

(3)The provisions of Article 85 and Articles 88 through 92 of the Civil Execution Act (Act No. 4 of 1979) apply mutatis mutandis to the procedure for a liquidating distribution referred to in paragraph (1), and the provisions of Articles 88, 91 and 92 of the same Act apply mutatis mutandis to the procedure for delivery of payment money under the provisions of the preceding paragraph.

Article 154(1)A rehabilitation plan must specify clauses concerning the following particulars:

(2)If the creditors committee conducts supervision or any other participation in order to secure performance of payment within the payment period specified in a rehabilitation plan, if the debtor subject to rehabilitation proceedings bears all or part of the expenses for the committee's supervision or participation, the rehabilitation plan must specify clauses on the burden of expenses.

(3)If permission of the court is granted under the provisions of Article 166, paragraph (1), a rehabilitation plan may specify clauses on the acquisition of the shares of the debtor subject to rehabilitation proceedings, clauses on consolidation of its shares, clauses on reduction in the amount of its stated capital or clauses on amendment of its articles of incorporation with regard to the total number of shares that may be issued by the debtor subject to rehabilitation proceedings, all of which will be conducted as provided for in a rehabilitation plan.

(4)If permission of the court is granted under the provisions of Article 166-2, paragraph (2), a rehabilitation plan may specify clauses on the solicitation (excluding solicitation for which the particulars listed in the items of Article 202, paragraph (1) of the same Act is specified; hereinafter the same applies in this Chapter) of subscribers for shares for subscription (meaning shares for subscription prescribed in Article 199, paragraph (1) of the Companies Act, limited to shares with restriction on transfer; hereinafter the same applies in this Chapter).

Article 155(1)The content of any modification of rights based on a rehabilitation plan must be equal between creditors in rehabilitation proceedings; provided, however, that this does not apply where any creditor in rehabilitation proceedings who will suffer detriment has given consent or where equity will not be undermined even if the plan otherwise provides for a small rehabilitation claim or any of the claims listed in Article 84, paragraph (2) or any other difference in treatment of creditors in rehabilitation proceedings.

(2)Notwithstanding the provisions of the preceding paragraph, in cases where proof of any consensually-subordinated rehabilitation claim is filed, a fair and equitable difference must be provided in the contents of a rehabilitation plan between persons who hold rehabilitation claims (excluding consensually-subordinated rehabilitation claims) and persons who hold consensually-subordinated rehabilitation claims, while taking into consideration the content of an agreement on the order of priority for receiving a liquidating distribution prescribed in Article 35, paragraph (4).

(3)If a debt is to be assumed or the term for a debt is to be extended based on a rehabilitation plan, except if there are special circumstances, the rehabilitation plan is to set a term for such debt not exceeding ten years from the time when an order of confirmation of the rehabilitation plan becomes final and binding.

(4)With regard to claims for fines, etc. arising prior to the commencement of rehabilitation proceedings, a rehabilitation plan may not provide for the reduction or release of debts or any other measures that would affect the rights concerned.

(5)If a rehabilitation plan provides for reduction or release of debts or any other measures that would affect rights with regard to a claim for a foreign tax subject to mutual assistance arising prior to the commencement of rehabilitation proceedings, the opinions of the person who has the power to collect the claim must be heard.

Article 156Clauses for modifying rights of creditors in rehabilitation proceedings must provide for general standards for the reduction or release of debts, extension of the term for debts or any other modification of rights (in cases where proof of any consensually-subordinated rehabilitation claim is filed, general standards for consensually-subordinated rehabilitation claims are included).

Article 157(1)Clauses for modifying rights of creditors in rehabilitation proceedings must clearly indicate rights held by holders of filed rehabilitation claims and creditors in rehabilitation proceedings stated in a written approval or disapproval under the provisions of Article 101, paragraph (3), which are to be modified, and also provide for the content of rights as modified according to the general standards referred to in the preceding Article; provided, however, that this not applies to rehabilitation claims prescribed in Article 159 and Article 160, paragraph (1).

(2)If there is a right held by a holder of filed rehabilitation claim or creditor in rehabilitation proceedings, both prescribed in the preceding paragraph, which will not be affected by a rehabilitation plan, the right must be clearly indicated.

Article 158(1)If a person other than the debtor subject to rehabilitation proceedings owes a debt for the purpose of rehabilitation by assuming a debt or becoming a guarantor, a rehabilitation plan must clearly indicate the person and provide for the content of the debt.

(2)If the debtor subject to rehabilitation proceedings or a person other than the debtor subject to rehabilitation proceedings provides security for the purpose of rehabilitation, a rehabilitation plan must clearly indicate the person who provides security and provide for the content of the security interest.

Article 159If there is a denied or disputed rehabilitation claim for which determination proceedings have not yet been closed, a rehabilitation plan must provide for appropriate measures for the claim, while taking into consideration the possible outcome of the determination of the rights concerned.

Article 160(1)If there is a person who holds a rehabilitation claim and the part of the claim for which payment cannot be received by exercising a right of separate satisfaction has not yet been determined, a rehabilitation plan must provide for appropriate measures for enabling the person to exercise rights as a creditor in rehabilitation proceedings in cases if the part of the claim is determined.

(2)If the principal of a revolving mortgage for securing the rehabilitation claim prescribed in the preceding paragraph is fixed, a rehabilitation plan may provide for provisional payment figured by estimate according to the general standards referred to in Article 156 with regard to the part of the claim secured by the revolving mortgage which exceeds the maximum amount. In this case, the rehabilitation plan must also provide for measures for settlement to be implemented when the part of the claim for which payment cannot be received by exercising the revolving mortgage has been determined.

Article 161(1)If the debtor subject to rehabilitation proceedings is a stock company and acquires shares of the debtor subject to rehabilitation proceedings itself based on a rehabilitation plan, the following particulars must be provided for in the rehabilitation plan:

(2)If the debtor subject to rehabilitation proceedings is a stock company and consolidates its shares based on a rehabilitation plan, the particulars listed in the items of Article 180, paragraph (2) of the Companies Act must be provided for in the rehabilitation plan.

(3)If the debtor subject to rehabilitation proceedings is a stock company and reduces the amount of its stated capital based on a rehabilitation plan, the particulars listed in the items of Article 447, paragraph (1) of the Companies Act must be provided for in the rehabilitation plan.

(4)If the debtor subject to rehabilitation proceedings is a stock company and amends its articles of incorporation based on a rehabilitation plan with regard to the total number of shares that may be issued by the debtor subject to rehabilitation proceedings, the content of the amendment must be provided for in the rehabilitation plan.

Article 162If the debtor subject to rehabilitation proceedings, who is a stock company, intends to solicit subscribers for shares for subscription with permission of the court under the provisions of Article 166-2, paragraph (2), a rehabilitation plan must provide for the particulars listed in the items of Article 199, paragraph (1) of the Companies Act.

Article 163(1)The debtor subject to rehabilitation proceedings, etc., within the period specified by the court after the expiration of the period for filing proofs of claims, must prepare a proposed rehabilitation plan and submit it to the court.

(2)The debtor subject to rehabilitation proceedings (limited to cases where a trustee is appointed) or a holder of a filed rehabilitation claim, may prepare a proposed rehabilitation plan and submit to the court within the period specified by the court.

(3)The court, upon petition or by its own authority, may extend the period specified thereby pursuant to the provisions of the preceding two paragraphs.

Article 164(1)The debtor subject to rehabilitation proceedings, etc., notwithstanding the provisions of paragraph (1) of the preceding Article, may submit a proposed rehabilitation plan after a petition to commence rehabilitation proceedings is filed and before the period for filing proofs of claims expires.

(2)In the case referred to in the preceding paragraph, a proposed rehabilitation plan may be submitted without providing therein for the particulars prescribed in Articles 157 and 159. In this case, the proposed rehabilitation plan must be supplemented with clauses on these particulars within the period specified by the court after the expiration of the period for filing proofs of claims.

Article 165(1)A person who intends to submit a proposed rehabilitation plan which provides for the owing of a debt or provision of security prescribed in Article 158 must obtain consent, in advance, from the person who will owe the debt or provide the security.

(2)A person who intends to submit a proposed rehabilitation plan which provides for provisional payment figured by estimate referred to in Article 160, paragraph (2) must obtain consent, in advance, from the person who holds the revolving mortgage regarding the provisions.

Article 166(1)A person who intends to submit a proposed rehabilitation plan which provides for the clauses prescribed in Article 154, paragraph (3) must obtain permission of the court in advance.

(2)The court may grant the permission referred to in the preceding paragraph only if the debtor subject to rehabilitation proceedings who is a stock company is unable to pay its debts in full with its assets.

(3)If an order of permission referred to in paragraph (1) is made, the written judgment must be served upon the person who filed the petition for the permission, and a document stating the outline of the order must be served upon shareholders, respectively. With regard to the service to shareholders made in this case, the provisions of Article 43, paragraphs (4) and (5) apply mutatis mutandis.

(4)A shareholder may file an immediate appeal against an order of permission under the provisions of paragraph (1).

Article 166-2(1)A proposed rehabilitation plan which provides for the clauses prescribed in Article 154, paragraph (4) may be filed only by the debtor subject to rehabilitation proceedings.

(2)A debtor subject to rehabilitation proceedings, if they intend to submit the proposed rehabilitation plan referred to in the preceding paragraph, must obtain permission of the court in advance.

(3)The court may grant the permission referred to in the preceding paragraph only when it finds that the debtor subject to rehabilitation proceedings who is a stock company is unable to pay its debts in full with its assets and that the solicitation of subscribers for shares for subscription is indispensable for the continuation of the business of the debtor subject to rehabilitation proceedings.

(4)The provisions of paragraphs (3) and (4) of the preceding Article apply mutatis mutandis where an order of permission referred to in paragraph (2) is made.

Article 167A person who has submitted a proposed rehabilitation plan may revise the proposed rehabilitation plan with the permission of the court; provided, however, that this does not apply after an order to refer a proposed rehabilitation plan to a resolution is made.

Article 168The court must hear opinions of the labor union, etc. with regard to a proposed rehabilitation plan. The same applies to a proposed rehabilitation plan as revised under the provisions of the preceding Article.

Article 169(1)If a proposed rehabilitation plan is submitted, the court makes an order to refer the proposed rehabilitation plan to a resolution, except in the cases falling under any of the following items:

(2)If making an order to refer to a resolution referred to in the preceding paragraph, the court must specify a means available to creditors in rehabilitation proceedings who may exercise voting rights (hereinafter referred to as "voting right holders") 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 172, paragraph (2) (including as applied mutatis mutandis pursuant to paragraph (3) of the relevant Article). In this case, any of the following means must be designated as that for exercising a voting right:

(3)If the court has made an order to refer to a resolution referred to in paragraph (1), it must make a public notice of the time limit prescribed in the first sentence of the preceding paragraph and give a notice of the relevant time limit and the contents of the proposed rehabilitation 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)If the court has designated either of the means set forth in paragraph (2), item (ii) or (iii) as that for exercising a voting right, it must make a public notice to that effect, and must give a notice to voting right holders that paper-based , etc.voting as prescribed in item (ii) of the same paragraph are allowed only within a period specified by the court.

(5)If the court has designated the means set forth in paragraph (2), item (ii) as that for exercising a voting right, if a person who may file a petition referred to in the first sentence of Article 114 has filed, within the period referred to in the preceding paragraph, a petition for convocation of a creditors meeting aimed for adopting a resolution on a proposed rehabilitation plan, the court must rescind the designation of the means for exercising a voting right, and designate the means set forth in paragraph (2), item (i) or (iii) instead.

Article 169-2(1)A person who holds a company bond or a claim specified in each item of Article 120-2, paragraph (6) (hereinafter referred to as "corporate bond, etc. " in this Article), which is a rehabilitation claim, if there is any bond administrator or person set forth in the respective items of the same paragraph (hereinafter referred to as a "bond administrator , etc. " in this Article) for the corporate bond , etc., may exercise their voting right based on the corporate bond, etc., only in the cases falling under any of the following items:

(2)A person who has acquired a corporate bond, etc.which is a rehabilitation claim and for which an offer prescribed in item (ii) of the preceding paragraph is made may receive a change of the name of the offerer.

(3)In the following cases, a person who holds a corporate bond, etc. referred to in paragraph (1) (limited to one who 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 rehabilitation plan in question:

Article 170(1)If the court designates either of the methods set forth in Article 169, paragraph (2), item (i) or (iii) as the means for exercising a voting right, the debtor subject to rehabilitation proceedings, etc. or a holder of filed rehabilitation claim may make an objection to a voting right held by a holder of filed rehabilitation claim on the date of a creditors meeting; provided, however, that this does not apply to a voting right held by a holder of filed rehabilitation claim the amount of which is determined pursuant to the provisions of Article 104, 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 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 (iii) of the preceding paragraph at any time.

Article 171(1)If the court designates the means set forth in Article 169, paragraph (2), item (ii) as the means for exercising a voting right, voting right holders may exercise their voting rights in accordance with the amount 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 172(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 169, paragraph (2).

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

Article 172-2(1)If the court finds it appropriate, upon making an order to refer a proposed rehabilitation plan to a resolution, it may designate a certain day (hereinafter referred to as the "record date" in this Article) and determine the creditors in rehabilitation proceedings recorded in the schedule of creditors in rehabilitation proceedings as of the record date as voting right holders.

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

Article 172-3(1)In order to approve a proposed rehabilitation plan, both of the following consents are required:

(2)If proof of any consensually-subordinated rehabilitation claims is filed, a resolution on a proposed rehabilitation plan is adopted separately by holders of rehabilitation claims (excluding consensually-subordinated rehabilitation claims; hereinafter the same applies in this Article, Article 172-5, paragraph (4) and Article 174-2, paragraphs (1) and (2)) and by holders of consensually-subordinated rehabilitation claims; provided, however, that this does not apply if there is no holder of consensually-subordinated rehabilitation claim who holds a voting right.

(3)Even in the case prescribed in the main clause of the preceding paragraph, the court, if it finds it appropriate, may decide that a resolution on a proposed rehabilitation plan will be adopted collectively by holders of rehabilitation claims and holders of consensually-subordinated rehabilitation claims.

(4)The court may revoke the order referred to in the preceding paragraph until it makes an order to refer a proposed rehabilitation plan to a resolution.

(5)If an order is made under the provisions of the preceding two paragraphs, the written judgment must be served upon voting right holders; provided, however, that this does not apply if the order is rendered on the date of a creditors meeting.

(6)Notwithstanding the provisions of paragraph (1), in order to approve a proposed rehabilitation plan in cases where a resolution on the proposed rehabilitation plan is be adopted separately by holders of rehabilitation claims and holders of consensually-subordinated rehabilitation claims, pursuant to the provisions of the main clause of paragraph (2), both of the consents listed in the items of paragraph (1) are required among both holders of rehabilitation claims and holders of consensually-subordinated rehabilitation claims.

(7)For the purpose of application of the provisions of paragraph (1), item (i) or the preceding paragraph in cases where any voting rights holder has exercised only part of their voting right pursuant to the provisions of Article 172, paragraph (2) (including as applied mutatis mutandis pursuant to paragraph (3) of the same Article) in order to consent to a proposed rehabilitation plan (excluding one who has not exercised the remaining part of the voting right), for each relevant voting right holder, the number of voting right holders prescribed in paragraph (1), item (i) is increased by one and the number of voting right holders who have exercised voting rights to consent to the proposed rehabilitation plan is increased by one-half, respectively.

Article 172-4If either of the means set forth in Article 169, paragraph (2), item (i) or (iii) is designated as that for exercising a voting right, the person who has submitted a proposed rehabilitation plan, with permission of the court, may modify the proposed rehabilitation plan at a creditors meeting as long as it does not adversely affect creditors in rehabilitation proceedings.

Article 172-5(1)If either of the means set forth in Article 169, paragraph (2), item (i) or (iii) has been designated as the means for exercising a voting right on a proposed rehabilitation plan, and the proposed rehabilitation plan has not been approved, if any of the consent listed in the following items is obtained, the court, upon the petition of the person who has submitted the proposed rehabilitation plan or by its own authority, must designate and render the further date; provided, however, that this does not apply where it is obvious that the proposed rehabilitation 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 rehabilitation plan referred to in the main clause of the same paragraph must be made within two months from the date of the first creditors meeting to which the proposed rehabilitation plan has been referred for a resolution.

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

(4)If a resolution on a proposed rehabilitation plan is adopted separately by holders of rehabilitation claims and holders of consensually-subordinated rehabilitation claims pursuant to the provisions of the main clause of Article 172-3, paragraph (2), the provisions of the preceding three paragraphs apply only if the consent listed in either item of paragraph (1) is obtained among both holders of rehabilitation claims and holders of consensually-subordinated rehabilitation claims.

Article 173If a rehabilitation proceeding is commenced against the debtor subject to rehabilitation proceedings that is a corporation in liquidation or special liquidation or a corporation against which bankruptcy proceedings have been commenced, if a proposed rehabilitation plan is approved, the corporation may continue to exist, by complying with the provisions concerning the amendment of the articles of incorporation and other basic general conditions.

Article 174(1)If a proposed rehabilitation plan is approved, the court issues an order of confirmation of the rehabilitation plan, except in any of the cases referred to in the following paragraph.

(2)In the cases falling under any of the following items, the court issues an order of disconfirmation of the rehabilitation plan:

(3)The persons prescribed in the main clause of Article 115, paragraph (1) and the labor union, etc. may state their opinions with regard to whether or not the proposed rehabilitation plan should be approved.

(4)If an order of confirmation or disconfirmation of the rehabilitation plan is made, a document stating the main text of the order and the outline of the reasons attached thereto must be served upon the persons prescribed in the main clause of Article 115, paragraph (1).

(5)In the case prescribed in the preceding paragraphs, the labor union, etc. must be given a notice to the effect that the order referred to in the relevant paragraph is made.

Article 174-2(1)If a resolution on a proposed rehabilitation plan is adopted separately by holders of rehabilitation claims and holders of consensually-subordinated rehabilitation claims pursuant to the provisions of the main clause of Article 172-3, paragraph (2), even if the proposed rehabilitation plan is not approved due to the fact that either of the consents listed in the items of paragraph (1) of the same Article has not been obtained among either of the holders of rehabilitation claims or holders of consensually-subordinated rehabilitation claims, the court may issue an order of confirmation of the rehabilitation plan by modifying the proposed rehabilitation plan, and in the interest of the holders of either category of claims among whom consent has not been obtained, by specifying a clause that the holders of the claims be paid the amount of distribution that they are expected to receive if bankruptcy proceedings are commenced, or any other equivalent clauses to protect the holders of those claims in a fair and equitable manner.

(2)If a resolution on a proposed rehabilitation plan is adopted separately by holders of rehabilitation claims and holders of consensually-subordinated rehabilitation claims pursuant to the provisions of the main clause of Article 172-3, paragraph (2), if it is obvious that for a proposed rehabilitation plan, the consent listed in either item of paragraph (1) of the same Article will not be obtained among either of the holders of rehabilitation claims or holders of consensually-subordinated rehabilitation claims, the court, upon the petition of the person who prepares a proposed rehabilitation plan, may permit that a proposed rehabilitation plan will be prepared by specifying, in advance, the clauses prescribed in the preceding paragraph in the interest of the holders of the category of claims among whom consent obviously will not be obtained. In this case, the holders of the category of claims among whom consent obviously will not be obtained may not exercise their voting rights to adopt a resolution on the proposed rehabilitation plan.

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

Article 175(1)An immediate appeal may be filed against an order of confirmation or disconfirmation of the rehabilitation plan.

(2)Notwithstanding the provisions of the preceding paragraph, if the debtor subject to rehabilitation proceedings, at the time of commencement of rehabilitation proceedings, is unable to pay their debts in full with their assets with regard to claims that take preference over consensually-subordinated rehabilitation claims, the holder of a consensually-subordinated rehabilitation claim may not file an immediate appeal except on the grounds that the contents of a rehabilitation plan are in violation of Article 155, paragraph (1) with regard to the relationships between the holders of consensually-subordinated rehabilitation claims.

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

(4)The provisions of the preceding paragraph apply mutatis mutandis to an appeal against an order under the provisions of Article 336 of the Code of Civil Procedure and to a petition for permission for appeal against an order under the provisions of Article 337 of the same Code, both provisions applied mutatis mutandis pursuant to Article 18, which are filed against a judicial decision on the immediate appeal referred to in paragraph (1).

Article 176A rehabilitation plan becomes effective when an order of confirmation becomes final and binding.

Article 177(1)A rehabilitation plan is effective in the interest of and against the debtor subject to rehabilitation proceedings, all creditors in rehabilitation proceedings, and any person who assumes a debt or provides security for the purpose of rehabilitation.

(2)A rehabilitation plan does not affect any security interests prescribed in Article 53, paragraph (1) held by holders of rights of separate satisfaction, any rights held by creditors in rehabilitation proceedings against the guarantor of the debtor subject to rehabilitation proceedings or any other person who owes debts jointly with the debtor subject to rehabilitation proceedings, and any security provided by persons other than the debtor subject to rehabilitation proceedings in the interest of creditors in rehabilitation proceedings.

Article 178(1)If an order of confirmation of the rehabilitation plan becomes final and binding, the debtor subject to rehabilitation proceedings is discharged from their liabilities for all rehabilitation claims, except for those for the rights approved as provided for in the rehabilitation plan or pursuant to the provisions of this Act; provided, however, that this does not apply to any claim for a fine, etc. arising prior to the commencement of rehabilitation proceedings.

(2)Notwithstanding the provisions of the preceding paragraph, the effect of a discharge 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 179(1)If an order of confirmation of the rehabilitation plan becomes final and binding, the rights of holders of filed rehabilitation claims and those of creditors in rehabilitation proceedings who hold rehabilitation claims stated in a statement of approval or disapproval pursuant to the provisions of Article 101, paragraph (3) will be modified as provided for in the rehabilitation plan.

(2)Holders of filed rehabilitation claims and creditors in rehabilitation proceedings prescribed in the preceding paragraph, only if their claims have been determined, may exercise their rights approved as provided for in the rehabilitation plan.

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

Article 180(1)If an order of confirmation of a rehabilitation plan becomes final and binding, a court clerk must make an entry of the clauses of the rehabilitation plan in the schedule of creditors in rehabilitation proceedings.

(2)In the case referred to in the preceding paragraph, with regard to the rights approved as provided for in the rehabilitation plan based on rehabilitation claims, the relevant entries in the schedule of creditors in rehabilitation proceedings have the same effect as a final and binding judgment against the debtor subject to rehabilitation proceedings, the creditor in rehabilitation proceedings and any person who assumes a debt or provides security for the purpose of rehabilitation.

(3)In the case referred to in paragraph (1), a person who holds a right referred to in the preceding paragraph that is intended to seek payment of money or any other performance may enforce compulsory execution based on the relevant entries in the schedule of creditors in rehabilitation proceedings against the debtor subject to rehabilitation proceedings and any person who has assumed a debt for the purpose of rehabilitation; provided, however, that this does not preclude the application of the provisions of Articles 452 and 453 of the Civil Code.

Article 181(1)If an order of confirmation of the rehabilitation plan becomes final and binding, the following rehabilitation claims (excluding consensually-subordinated rehabilitation claims in cases where no proof of a consensually-subordinated rehabilitation claim is filed) are modified according to the general standards referred to in Article 156:

(2)With regard to a right as modified under the provisions of item (iii) of the preceding paragraph, until the payment period as provided for in the rehabilitation plan expires (or until payment based on the rehabilitation plan is completed or the rehabilitation plan is revoked, if these events occur prior to the expiration of the relevant period), it is not allowed to make or receive payments or conduct any other acts to cause the right to be extinguished (excluding a release).

(3)If an order of confirmation of the rehabilitation plan becomes final and binding, the provisions of the preceding paragraph also apply to a claim for a fine, etc. arising prior to the commencement of rehabilitation proceedings.

Article 182If a creditor in rehabilitation proceedings holds a security interest prescribed in Article 53, paragraph (1), only if the part of the claim for which payment cannot be received by exercising the right of separate satisfaction is determined, they may exercise, with regard to the part of the claim, rights approved provided for in the confirmed rehabilitation plan or rights as modified pursuant to the provisions of paragraph (1) of the preceding Article; provided, however, that if the security interest in question is a revolving mortgage and the rehabilitation plan provides for provisional payment figured by estimate and measures for settlement under the provisions of Article 160, paragraph (2), these provisions prevail.

Article 183(1)If a rehabilitation plan specifies, pursuant to the provisions of Article 154, paragraph (3), clauses on the acquisition of shares of a debtor subject to rehabilitation, a debtor subject to rehabilitation proceedings acquires the shares referred to in Article 161, paragraph (1), item (i) on the date referred to in the same paragraph, item (ii) as provided for in the confirmed rehabilitation plan.

(2)If a rehabilitation plan specifies, pursuant to the provision of Article 154, paragraph (3), clauses on the consolidation of shares, a debtor subject to rehabilitation proceedings may consolidate its shares as provided for in the confirmed rehabilitation plan. In this case, the provisions of Article 116, Article 117, Article 182-4 and Article 182-5 of the Companies Act do not apply.

(3)In the case referred to in the preceding paragraph, a case regarding a petition for permission referred to in Article 234, paragraph (2) of the Companies Act as applied mutatis mutandis pursuant to Article 235, paragraph (2) of the same Act is subject to the jurisdiction of the rehabilitation court.

(4)If a rehabilitation plan specifies, pursuant to the provisions of Article 154, paragraph (3), clauses on the reduction of the amount of stated capital, a debtor subject to rehabilitation proceedings may reduce the amount of its stated capital as provided for in the confirmed rehabilitation plan. In this case, the provisions of Articles 449 and 740 of the Companies Act do not apply.

(5)In the case referred to in the preceding paragraph, notwithstanding the provisions of Article 828, paragraph (1), item (v) and paragraph (2), item (v) of the Companies Act, no action may be filed to seek invalidation of the reduction of the amount of stated capital.

(6)If a rehabilitation plan specifies, pursuant to the provisions of Article 154, paragraph (3), clauses on the amendment of the articles of incorporation with regard to the total number of shares that may be issued by the debtor subject to rehabilitation proceedings, the articles of incorporation will be amended as provided for in the rehabilitation plan when an order of confirmation of the rehabilitation plan becomes final and binding.

(7)If the consolidation of shares, reduction in the amount of stated capital or amendment of the articles of incorporation, as provided for in the confirmed rehabilitation plan, is conducted pursuant to the provisions of paragraph (2), paragraph (4) or the preceding paragraph, the written application for registration of those particulars must be accompanied by a transcript or extract of a written judgment of confirmation of the rehabilitation plan.

Article 183-2(1)If a rehabilitation plan specifies, pursuant to the provisions of Article 154, paragraph (4), clauses on the solicitation of subscribers for shares for subscription, notwithstanding the provisions of Article 199, paragraph (2) of the Companies Act, the subscription requirements prescribed in the same paragraph may be specified by a decision of directors (or by a resolution of the board of directors if the debtor subject to rehabilitation proceedings is a company with board of directors). In this case, the provisions of paragraph (4) of the same Article, and Article 204, paragraph (2) and Article 205, paragraph (2) of the same Act do not apply.

(2)The provisions of Article 201, paragraphs (3) through (5) of the Companies Act apply mutatis mutandis to the case referred to in the preceding paragraph.

(3)The written application for registration of modification due to the solicitation of subscribers for shares for subscription referred to in paragraph (1) must be accompanied by a transcript or extract of a written judgment of confirmation of the rehabilitation plan.

Article 184If an order of confirmation of the rehabilitation plan becomes final and binding, the procedures, proceedings or disposition stayed pursuant to the provisions of Article 39, paragraph (1) cease to be effective; provided, however, that this does not apply to the procedures, proceedings or disposition continued pursuant to the provisions of paragraph (2) of the same Article.

Article 185(1)If an order of disconfirmation of a rehabilitation plan becomes final and binding, the entries in the schedule of creditors in rehabilitation proceedings with regard to rehabilitation claims determined have the same effect as a final and binding judgment against the debtor subject to rehabilitation proceedings; provided, however, that this does not apply if the debtor subject to rehabilitation proceedings makes an objection under the provisions of Article 102, paragraph (2) or Article 103, paragraph (4).

(2)In the case referred to in the preceding paragraph, a creditor in rehabilitation proceedings may enforce compulsory execution against the debtor subject to rehabilitation proceedings based on the entries in the schedule of creditors in rehabilitation proceedings.

Article 211(1)If, after the period for filing a proof of claims has expired and before the ordinary period for investigation has started, a petition is filed by the debtor subject to rehabilitation proceedings, etc., the court makes an order to simplify rehabilitation (meaning an order to the effect that proceedings for investigation and determination of rehabilitation claims not be performed; the same applies hereinafter). In this case, the debtor subject to rehabilitation proceedings, etc. may file a petition only where a holder of a filed rehabilitation claim who holds a claim that accounts for three-fifths or more of the value, as determined by the court, of total claims held by holders of filed rehabilitation claims has, in writing, consented to a proposed rehabilitation plan submitted by the debtor subject to rehabilitation proceedings, etc. and also consented to not performing the proceedings for investigation and determination of rehabilitation claims provided for in Chapter IV, Section 3.

(2)If filing a petition referred to in the preceding paragraph, the debtor subject to rehabilitation proceedings, etc. must notify the labor union, etc. to that effect.

(3)If a petition referred to in paragraph (1) is filed, and when the court finds that a proposed rehabilitation plan referred to in the second paragraph of the same paragraph falls under any of the grounds set forth in the items of Article 174, paragraph (2) (excluding item (iii)), the court must dismiss the petition without prejudice.

(4)For the purpose of application of the provisions of the second sentence of paragraph (1) and the preceding paragraph in cases where a proposed rehabilitation plan referred to in the second sentence of paragraph (1) specifies special clauses on home loans, in the second sentence of the same paragraph, the phrase "total claims held by holders of filed rehabilitation claims" is replaced with "all of the claims held by holders of filed rehabilitation claims (excluding a home loan claim prescribed in Article 198, paragraph (1) or a right to indemnification based on the guarantee company for the debt for a home loan claim, which has been filed)," the phrase "holder of filed rehabilitation claim who holds a claim" is replaced with "holder of filed rehabilitation claim who holds the relevant claim," and in the preceding paragraph, the phrase "items of Article 174, paragraph (2) (excluding item (iii))" is replaced with "items of Article 202, paragraph (2) (excluding item (iv))."

Article 212(1)If an order to simplify rehabilitation is made, an order on the ordinary period for investigation ceases to be effective.

(2)The court, upon making an order to simplify rehabilitation, must make an order to refer a proposed rehabilitation plan referred to in the second sentence of paragraph (1) of the preceding Article to a resolution, while designating the means set forth in Article 169, paragraph (2), item (i) as that for exercising voting rights and setting 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 172, paragraph (2) (including as applied mutatis mutandis pursuant to paragraph (3) of the same Article).

(3)If an order to simplify rehabilitation is made, a public notice must be made with regard to the main text of the order, the date of a creditors meeting aimed for adopting a resolution on a proposed rehabilitation plan referred to in the second sentence of paragraph (1) of the preceding Article, the time limit prescribed in the preceding paragraph, and the proposed rehabilitation plan in question, and a notice of these particulars must also be given to the persons prescribed in the main text of Article 115, paragraph (1). In this case, a notice of the date of the creditors meeting must be given to the labor union , etc.

(4)The provisions of Article 115, paragraphs (1) through (4) do not apply to the creditors meeting referred to in the preceding paragraph.

(5)For the purpose of application of the provisions of Article 172, paragraph (2) (including as applied mutatis mutandis pursuant to paragraph (3) of the same Article) in cases where an order to simplify rehabilitation is made, the phrase "the first sentence of Article 169, paragraph (2)" in paragraph (2) of the same Article is replaced with "Article 212, paragraph (2)."

Article 213(1)An immediate appeal may be filed against a judicial decision on the petition referred to in Article 211, paragraph (1).

(2)The immediate appeal referred to in the preceding paragraph does not have the effect of stay of execution.

(3)If an order to revoke an order to simplify rehabilitation becomes final and binding, the court that has made the order to simplify rehabilitation must specify the ordinary period for investigation without delay.

(4)The provisions of Article 102, paragraphs (3) through (5) apply mutatis mutandis to the service of an order to specify the ordinary period for investigation referred to in the preceding paragraph.

(5)If an order to simplify rehabilitation becomes final and binding, the debtor subject to rehabilitation proceedings, etc. must substitute in any action discontinued pursuant to the provisions of Article 40, paragraph (1) (including as applied mutatis mutandis pursuant to paragraph (3) of the same Article). In this case, a petition for the substitution in the action may also be filed by the opponent.

Article 214(1)At a creditors meeting prescribed in Article 212, paragraph (3), only a proposed rehabilitation plan referred to in the second sentence of Article 211, paragraph (1) may be referred to a resolution.

(2)The court may not refer the proposed rehabilitation plan referred to in the preceding paragraph to a resolution unless a report is made by the debtor subject to rehabilitation proceedings, etc. at a meeting for reporting the status of assets or a written report referred to in Article 125, paragraph (1) is submitted.

(3)If a holder of filed rehabilitation claim who has not attended a creditors meeting referred to in paragraph (1) has given the consent prescribed in the second sentence of Article 211, paragraph (1), for the purpose of application of the provisions of Article 172-3, paragraphs (1) and (6), the holder of filed rehabilitation claim is deemed to have attended the creditors meeting and consented to the proposed rehabilitation plan in question; provided, however, that this does not apply if the holder of filed rehabilitation claim, prior to the commencement of the creditors meeting referred to in paragraph (1), has submitted to the court a document stating that they revoke the consent prescribed in the second sentence of Article 211, paragraph (1).

Article 215(1)If an order to simplify rehabilitation is made, when an order of confirmation of the rehabilitation plan becomes final and binding, all rights of creditors in rehabilitation proceedings (excluding consensually-subordinated rehabilitation claims if no proof of consensually-subordinated rehabilitation claim is filed, and claims for fines, etc. arising prior to the commencement of rehabilitation proceedings) are modified according to the general standards referred to in Article 156, paragraph (1).

(2)For the purpose of application of the provisions of Article 182, Article 189, paragraph (3) and Article 206, paragraph (1) in the case prescribed in the preceding paragraph, the phrase "rights approved as provided for in the confirmed rehabilitation plan or rights as modified pursuant to the provisions of paragraph (1) of the preceding Article" in Article 182 and the phrase "rights approved as provided for in the rehabilitation plan" in Article 189, paragraph (3) and Article 206, paragraph (1) are deemed to be replaced with "rights as modified pursuant to the provisions of Article 215, paragraph (1)."

(3)In the case prescribed in paragraph (1), if no proof of consensually-subordinated rehabilitation claim is filed, the debtor subject to rehabilitation proceedings are discharged from their liabilities for any consensually-subordinated rehabilitation claim.

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

Article 216(1)If an order to simplify rehabilitation is made, the following provisions do not apply: Article 67, paragraph (4), Chapter IV, Section 3, Article 157, Article 159, the second sentence of Article 164, paragraph (2), Article 169, Article 171, Articles 178 through 180, Article 181, paragraphs (1) and (2), Article 185 (including as applied mutatis mutandis pursuant to Article 189, paragraph (8), Article 190, paragraph (2) and Article 195, paragraph(7)), Article 186, paragraphs (3) and (4), Article 187, Article 200, paragraphs (2) and (4) and Article 205, paragraph (2).

(2)For the purpose of application of the provisions of Article 67, paragraph (3) if an order to simplify rehabilitation is made, the phrase "action [discontinued under the provisions of the preceding paragraph] which does not relate to any rehabilitation claim" in Article 67, paragraph (3) is replaced with "action [discontinued under the provisions of the preceding paragraph]."

Article 217(1)If, after the period for filing a proof of claims has expired but before the ordinary period for investigation has started, a petition is filed by the debtor subject to rehabilitation proceedings, etc. the court issues an order of consensual rehabilitation (meaning an order to the effect that proceedings for investigation and determination of rehabilitation claims and a procedure for adopting a resolution on a proposed rehabilitation plan submitted by the debtor subject to rehabilitation proceedings, etc. does not be performed; the same applies hereinafter). In this case, the debtor subject to rehabilitation proceedings, etc. may file a petition only where all holders of filed rehabilitation claims have, in writing, consented to a proposed rehabilitation plan submitted by the debtor subject to rehabilitation proceedings, etc. and also consented to not performing the proceedings for investigation and determination of rehabilitation claims provided for in Chapter IV, Section 3.

(2)The court may not issue an order of consensual rehabilitation unless a report is made by the debtor subject to rehabilitation proceedings, etc. at a meeting for reporting the status of assets or a written report referred to in Article 125, paragraph (1) is submitted.

(3)If a petition referred to in paragraph (1) is filed, and when the court finds that a proposed rehabilitation plan referred to in the second paragraph of the same paragraph falls under any of the grounds set forth in the items of Article 174, paragraph (2) (excluding item (iii)), the court must dismiss the petition without prejudice.

(4)If an order of consensual rehabilitation is made, a public notice must be made with regard to the main text of the order, the outline of the reasons attached thereto and the proposed rehabilitation plan referred to in the second sentence of paragraph (1), and a notice of these particulars must also be given to the persons prescribed in the main text of Article 115, paragraph (1).

(5)For the purpose of application of the provisions of the second sentence of paragraph (1), paragraph (3) and the preceding paragraph in cases where a proposed rehabilitation plan referred to in the second sentence of paragraph (1) specifies special clauses on home loans, the phrase "holders of filed rehabilitation claims" in the second sentence of paragraph (1) is replaced with "holders of filed rehabilitation claims (excluding a creditor in rehabilitation proceedings who holds a home loan claims prescribed in Article 198, paragraph (1) and does not hold any rehabilitation claim except for the home loan claims or a guarantee company that does not hold any rehabilitation claim except for a right to indemnification based on the guarantee for the debt for a home loan claims)", the phrase "items of Article 174, paragraph (2) (excluding item (iii)" in paragraph (3) is replaced with "items of Article 202, paragraph (2) (excluding item (iv))," and the phrase "persons prescribed in the main text of Article 115, paragraph (1)" in the preceding paragraph is replaced with "the persons prescribed in the main text of Article 115, paragraph (1) and any person who is supposed to be subject to a modification of rights by the special clauses on home loans but has not filed a proof of a rehabilitation claim."

(6)The provisions of Article 174, paragraph (3) and Article 211, paragraph (2) apply mutatis mutandis to a petition referred to in paragraph (1), the provisions of Article 174, paragraph (5) and Article 212, paragraph (1) apply mutatis mutandis to cases where an order of consensual rehabilitation is made, and the provisions of Article 202, paragraph (3) apply mutatis mutandis to opinions on an order of consensual rehabilitation if a proposed rehabilitation plan referred to in the second sentence of paragraph (1) specifies special clauses on home loans.

Article 218(1)An immediate appeal may be filed against a judicial decision on the petition referred to in paragraph (1) of the preceding Article.

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

(3)The provisions of Article 175, paragraphs (2) and (3) apply mutatis mutandis to an immediate appeal referred to in paragraph (1) as well as to an appeal against an order under the provisions of Article 336 of the Code of Civil Procedure and a petition for permission for appeal against an order under the provisions of Article 337 of the Code, both provisions applied mutatis mutandis pursuant to Article 18, which are filed against a judicial decision on the relevant immediate appeal, the provisions of Article 213, paragraph (3) apply mutatis mutandis to cases where an order to revoke an order of consensual rehabilitation becomes final and binding, and the provisions of Article 102, paragraphs (3) through (5) apply mutatis mutandis to the service of an order to specify the ordinary period for investigation referred to in Article 213, paragraph (3) as applied mutatis mutandis pursuant to this paragraph.

Article 219(1)If an order of consensual rehabilitation becomes final and binding, it is deemed that an order of confirmation of the rehabilitation plan becomes final and binding with regard to a proposed rehabilitation plan referred to in the second sentence of Article 217, paragraph (1).

(2)The provisions of Article 173, Article 213, paragraph (5) and Article 215 apply mutatis mutandis where an order of consensual rehabilitation becomes final and binding.

Article 220(1)If an order of consensual rehabilitation is made, the following provisions do not apply: Article 67, paragraph (4), Chapter IV, Section 3, Article 157, Article 159, the second sentence of Article 164, paragraph (2), Chapter VII, Section 3, Article 174, Article 175, Articles 178 through 180, Article 181, paragraphs (1) and (2), Article 185 (including as applied mutatis mutandis pursuant to Article 189, paragraph (8), Article 190, paragraph (2) and Article 195, paragraph (7)), Article 186, paragraphs (3) and (4), Article 187, Article 200, paragraphs (2) and (4), and Article 205, paragraph (2).

(2)For the purpose of application of the provisions of Article 67, paragraph (3) if an order of consensual rehabilitation is made, the phrase "action [discontinued under the provisions of the preceding paragraph] which does not relate to any rehabilitation claim" in Article 67 (3) is replaced with "action [discontinued under the provisions of the preceding paragraph]."

Article 221(1)A debtor who is an individual, if they are likely to earn income continuously or regularly in the future and the total amount of rehabilitation claims which they owe (excluding the amount of home loan claims, the amount of rehabilitation claims for which payment is expected to be received by exercising a right of separate satisfaction, and the amount of claims for fines, etc. arising prior to the commencement of rehabilitation proceedings) is not more than 50 million yen, may request the implementation of rehabilitation proceedings subject to the special provisions prescribed in this Section (hereinafter referred to as "rehabilitation for individuals with small-scale debts").

(2)A request for rehabilitation for individuals with small-scale debts must be made upon filing a petition to commence rehabilitation proceedings (if a creditor has filed a petition to commence rehabilitation proceedings, the request is made by the time when an order to commence rehabilitation proceedings is made).

(3)If making a request referred to in the preceding paragraph, a document stating the following particulars (hereinafter referred to as the "list of creditors") must be submitted:

(4)The debtor subject to rehabilitation proceedings, when stating in the list of creditors the amount of each rehabilitation claim and the estimated amount of deficiency, may also state that they object to the whole or part of the relevant amount.

(5)With respect to the calculation of the total amount of rehabilitation claims prescribed in paragraph (1) and the statement of the amount of rehabilitation claim in the list of creditors, the rehabilitation claims listed in Article 87, paragraph (1), items (i) through (iii) are to be treated as the claims of the amount specified in the respective items for the categories of claims listed in the respective items.

(6)The debtor subject to rehabilitation proceedings, when making a request referred to in paragraph (2), must clarify whether or not they have the intention of seeking the commencement of rehabilitation proceedings even where it becomes obvious that the relevant request does not satisfy the requirements prescribed in paragraph (1) or (3); provided, however, that this does not apply where a creditor has filed a petition to commence rehabilitation proceedings.

(7)If the court finds that the request referred to in paragraph (2) obviously does not satisfy the requirements prescribed in the main clause of the preceding paragraph, the court makes an order, only before making an order to commence rehabilitation proceedings, to the effect that the rehabilitation case will be handled through ordinary rehabilitation proceedings; provided, however, that if the debtor subject to rehabilitation proceedings has clarified, pursuant to the provisions of the main clause of the preceding paragraph, that they have no intention of seeking the commencement of rehabilitation proceedings, the court must dismiss with prejudice on the merits the petition to commence rehabilitation proceedings.

Article 222(1)In cases of rehabilitation for individuals with small-scale debts, the court, upon making an order to commence rehabilitation proceedings, must specify, beyond the period for filing a proof of claims, a period during which an objection may be made to any filed rehabilitation claim. In this case, the court is not required to specify the ordinary period for investigation.

(2)The court, when it has made an order to commence rehabilitation proceedings, must immediately make a public notice of the main text of the order to commence rehabilitation proceedings, the period for filing a proof of claims, and the period during which an objection may be made to any filed rehabilitation claim as prescribed in the preceding paragraph (hereinafter referred to as the "ordinary period for making objections").

(3)The debtor subject to rehabilitation proceedings and known creditors in rehabilitation proceedings must be given a notice of the particulars prescribed in the preceding paragraph.

(4)Known creditors in rehabilitation proceedings must be given a notice of the particulars stated in the list of creditors pursuant to the provisions of the items of paragraph (3) of the preceding Article and the provisions of paragraph (4) of the relevant Article.

(5)The provisions of paragraphs (2) and (3) apply mutatis mutandis if there is a change to the period for filing a proof of claims.

Article 223(1)If a request referred to in Article 221, paragraph (2) is made, the court, if it finds it necessary, upon the petition of an interested person or by its own authority, may appoint one or more individual rehabilitation commissioners; provided, however, that if a petition for valuation of rehabilitation claim prescribed in the main text of Article 227, paragraph (1) is filed, the court must appoint an individual rehabilitation commissioner except where it dismisses the petition as unlawful without prejudice.

(2)If making an order under the provisions of the preceding paragraph, the court is to designate one or more of the particulars listed below as duties of an individual rehabilitation commissioner:

(3)The court, when designating, in an order under the provisions of paragraph (1), the matter set forth in item (i) of the preceding paragraph as a duty of an individual rehabilitation commissioner, must also specify a period during which they should report the results of the investigation to the court.

(4)The court may change or revoke an order made under the provisions of paragraph (1).

(5)An immediate appeal may be filed against orders made pursuant to the provisions of paragraph (1) and the preceding paragraph.

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

(7)If a judicial decision prescribed in paragraph (5) and a judicial decision on the immediate appeal referred to in the same paragraph are made, the written judgment must be served upon the parties concerned.

(8)An individual rehabilitation commissioner for whom the matter set forth in paragraph (2), item (i) is designated as their duty may request the debtor subject to rehabilitation proceedings or their statutory agent to report on the status of the assets and income of the debtor subject to rehabilitation proceedings or may inspect the books, documents and any other items of the debtor subject to rehabilitation proceedings.

(9)An individual rehabilitation commissioner may receive advance payments of expenses as well as remuneration determined by the court.

(10)The provisions of Article 54, paragraph (3), Article 57, Article 58, Article 60, and Article 61, paragraphs (2) through (4) apply mutatis mutandis to an individual rehabilitation commissioner.

Article 224(1)In cases of rehabilitation for individuals with small-scale debts, creditors in rehabilitation proceedings who intend to participate in rehabilitation proceedings is not required to file a proof of the amount of the voting right.

(2)With regard to the filing of proofs of rehabilitation claims in the case of rehabilitation for individuals with small-scale debts, the provisions of Article 221, paragraph (5) apply mutatis mutandis.

Article 225A creditor in rehabilitation proceedings stated in the list of creditors is deemed, with regard to their rehabilitation claim stated in the list of creditors, to have filed a proof of rehabilitation claim on the first day of the period for filing a proof of claims, with the same content as that of the statements in the list of creditors, except if they have filed with the court, within the period for filing a proof of claims, a proof of the relevant rehabilitation claim in question or proof to the effect that they do not have the relevant rehabilitation claim.

Article 226(1)The debtor subject to rehabilitation proceedings and a holder of filed rehabilitation claim may make an objection in writing to the court within the ordinary period for making objections with regard to the amount of a filed rehabilitation claim or estimated amount of deficiency; provided, however, that the debtor subject to rehabilitation proceedings may make no objection to the amount of a rehabilitation claim and estimated amount of deficiency stated in the list of creditors, to which they have not stated that they have an objection in the list of creditors, pursuant to the provisions of Article 221, paragraph (4).

(2)If a rehabilitation claim is filed or a change is made to any filed particular pursuant to the provisions of Article 95, the court must specify a period during which an objection to the rehabilitation claim in question may be made (hereinafter referred to as the "special period for making objections").

(3)The debtor subject to rehabilitation proceedings and a holder of filed rehabilitation claim may make an objection in writing to the court within the special period for making objections with regard to the amount of a filed rehabilitation claim or estimated amount of deficiency, within the special period for making objections.

(4)The provisions of Article 102, paragraph (3) through (5) apply mutatis mutandis to the service of a written judgment if an order to specify the special period for making objections or an order to change the ordinary period for making objections or special period for making objections is made, and the provisions of Article 103, paragraph (2) apply mutatis mutandis in the case referred to in paragraph (2).

(5)The provisions of the preceding paragraphs do not apply to a claim for a fine, etc. arising prior to the commencement of rehabilitation proceedings, and to a home loan claims prescribed in Article 198, paragraph (1) if the debtor subject to rehabilitation proceedings has stated in the list of creditors that they have the intention of submitting a proposed rehabilitation plan that specifies special clauses on home loans.

(6)If the debtor subject to rehabilitation proceedings has stated in the list of creditors that they have the intention of submitting a proposed rehabilitation plan that specifies special clauses on home loans, a creditor in rehabilitation proceedings who holds a home loan claims prescribed in Article 198, paragraph(1) and does not hold any rehabilitation claim except for the home loan claims, and a guarantee company that does not hold any rehabilitation claim except for the right to indemnification based on the guarantee for the debt for a home loan claims may not make an objection referred to in the main clause of paragraphs (1) and (3).

Article 227(1)If the debtor subject to rehabilitation proceedings or a holder of a filed rehabilitation claim has made an objection pursuant to the provisions of the main clause of paragraph (1) of the preceding Article or paragraph (3) of the relevant Article, the creditor in rehabilitation proceedings who holds the rehabilitation claim subject to objection may file a petition with the court, within an unextendable period of three weeks from the last day of the period for making objections, for valuation of rehabilitation claim; provided, however, that if the rehabilitation claim in question is accompanied by an enforceable title of obligation or final judgment, the petition must be filed by the person who made the objection.

(2)In the case referred to in the proviso to the preceding paragraph, if a petition for valuation of rehabilitation claim is not filed within an unextendable period referred to in the main clause of the preceding paragraph or the petition is dismissed without prejudice, any objection referred to in the main clause of paragraph (1) of the preceding Article or paragraph (3) of the relevant Article is deemed to have never been made.

(3)If filing a petition for valuation of rehabilitation claim, a petitioner must prepay an amount designated by the court as expenses for proceedings for the petition.

(4)If prepayment of expenses prescribed in the preceding paragraph is not made, the court must dismiss without prejudice the petition for valuation of rehabilitation claim.

(5)The court, if designating, in an order under the provisions of Article 223, paragraph (1), the matter set forth in paragraph (2), item (ii) of the same Article as a duty of an individual rehabilitation commissioner, must also specify a period during which they should report the results of the investigation to the court.

(6)An individual rehabilitation commissioner for whom the matter set forth in Article 223, paragraph (2), item (ii) is designated as their duty may request the debtor subject to rehabilitation proceedings or their statutory agent or a creditor in rehabilitation proceedings (if the matter set forth in item(i) of the same paragraph is also designated as the individual rehabilitation commissioner's duty, a creditor in rehabilitation proceedings) to produce materials concerning the existence or nonexistence of the rehabilitation claim in question and the estimated amount of deficiency.

(7)In the valuation of rehabilitation claims, the court establishes whether or not a claim exists, the value of the relevant claim, or the estimated amount of deficiency with regard to rehabilitation claims subject to a petitioned evaluation.

(8)The court, when conducting the valuation of rehabilitation claim, must hear the opinion of an individual rehabilitation commissioner for whom the matter set forth in Article 223, paragraph (2), item (ii) is designated as their duty.

(9)With regard to the valuation of a rehabilitation claim under the provisions of paragraph (7), the provisions of Article 221, paragraph (5) apply mutatis mutandis.

(10)The provisions of the preceding paragraphs do not apply to a claim for a fine, etc. arising prior to the commencement of rehabilitation proceedings, and to a home loan claim prescribed in Article 198, paragraph (1) if the debtor subject to rehabilitation proceedings states in the list of creditors that they intend to submit a proposed rehabilitation plan that specifies special clauses on the home loans.

Article 228In the case of rehabilitation for individuals with small-scale debts, the debtor subject to rehabilitation proceedings is not required to prepare and submit balance sheets under the provisions of Article 124, paragraph (2).

Article 229(1)In the case of rehabilitation for individuals with small-scale debts, the content of any modification of rights based on a rehabilitation plan must be equal between creditors in rehabilitation proceedings, except where any creditors in rehabilitation proceedings who will suffer detriment has given consent or if the plan otherwise provides for the due date of the small rehabilitation claim or for any of the claims listed in Article 84, paragraph (2).

(2)An extension of the term for debt under the clauses that modify rights of creditors in rehabilitation proceedings, unless otherwise provided for pursuant to the provisions of the preceding paragraph, must be made as prescribed below:

(3)Notwithstanding the provisions of paragraph (1), with regard to any of the following rehabilitation claims, a rehabilitation plan may not provide for a reduction or release of debts or any other measures that would affect the rights concerned, except with the consent of the creditor in rehabilitation proceedings concerned:

(4)The provisions of paragraph (1) do not apply between a person who is subject to a modification of rights by special clauses on home loans and other creditors in rehabilitation proceedings, and the provisions of paragraph (2) do not apply to special clauses on home loans.

Article 230(1)The court may not refer a proposed rehabilitation plan to a resolution unless the ordinary period for making objections (in cases where a special period for making objections is specified, the period is included) has expired and a written report referred to in Article 125, paragraph (1) has been submitted. If an objection under the provisions of the main clause of Article 226, paragraph (1) is made within the relevant ordinary period for making objections (including cases where an objection under the provisions of paragraph (3) of the same Article is made within a special period for making objection, if any the period is specified), the court may not refer the a plan to a resolution until an unextendable period referred to in the main clause of Article 227, paragraph (1) has expired (if a petition for valuation of rehabilitation claim is filed within the unextendable period, until the valuation of rehabilitation claim is conducted).

(2)The court may not refer a proposed rehabilitation plan to a resolution if it finds that the proposed rehabilitation plan falls under any of the grounds set forth in the items of Article 174, paragraph (2) (excluding item (iii); or Article 202, paragraph (2), items (i) through (iii) if the proposed rehabilitation plan specifies special clauses on home loans) or the grounds set forth in the items of paragraph (2) of the following Article.

(3)If a proposed rehabilitation plan is submitted, the court, except in the cases referred to in the preceding two paragraphs, makes an order to refer the proposed rehabilitation plan to a resolution, while designating the means set forth in Article 169, paragraph (2), item (ii) as that for exercising voting rights and setting 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 172, paragraph (2) (including as applied mutatis mutandis pursuant to paragraph (3) of the same Article).

(4)If the court has made an order referred to in the preceding paragraph, the court must make a public notice to that effect, and notify voting right holders with regard to the time limit prescribed in the same paragraph, the content of the proposed rehabilitation plan or the outline thereof, and to the effect that any person who does not consent to the proposed rehabilitation plan should respond to that effect within the period specified by the court by the means designated pursuant to the provisions of the same paragraph.

(5)For the purpose of application of the provisions of Article 172, paragraph (2) (including as applied mutatis mutandis pursuant to paragraph (3) of the same Article) in cases where an order referred to in paragraph (3) is made, the phrase "the first sentence of Article 169, paragraph (2)" in paragraph (2) of the same Article is replaced with "Article 230, paragraph (3)."

(6)If the number of voting right holders who have responded, within the period referred to in paragraph (4) by the means referred to in the same paragraph, that they do not consent to a proposed rehabilitation plan, is less than half of the total number of voting right holders, and the amount of voting rights held by voting right holders who have thus responded does not exceed half of the total amount of voting rights held by all voting holders, the proposed rehabilitation plan is deemed to have been approved.

(7)For the purpose of application of the provisions of the preceding paragraph in cases where any of the voting right holders who have responded that they do not consent to a proposed rehabilitation plan by the means referred to in paragraph (4), have exercised only part of their voting right pursuant to the provisions of Article 172, paragraph (2) (including as applied mutatis mutandis pursuant to paragraph (3) of the same Article), the total number of voting right holders is to be increased by one for each of the relevant voting right holders, and the number of voting right holders who have responded that they do not consent to the proposed rehabilitation plan, by the means referred to in paragraph (4), is to be increased by one-half for each of the relevant voting right holders..

(8)A holder of filed rehabilitation claim may exercise their voting right, in the case of a filed rehabilitation claim to which no objection is made before the expiration of the ordinary period for making objections or the special period for making objections (excluding one prescribed in Article 226, paragraph (5); hereinafter referred to as a "claim without objection"), according to the amount of filed rehabilitation claim or estimated amount of deficiency, and in the case of a rehabilitation claim for which the court has determined the amount of claim or estimated amount of deficiency pursuant to the provisions of Article 227, paragraph (7) (hereinafter referred to as an "valued claim"), according to these amounts, respectively.

Article 231(1)In the case of rehabilitation for individuals with small-scale debts, where a proposed rehabilitation plan is approved, the court issues an order of confirmation of the rehabilitation plan, except in the case referred to in Article 174, paragraph (2) (or Article 202, paragraph (2) if the proposed rehabilitation plan specifies special clauses on home loans) or the cases referred to in the following paragraph.

(2)In the case of rehabilitation for individuals with small-scale debts, the court also issues an order of disconfirmation of the rehabilitation plan in the cases falling under any of the following items:

Article 232(1)In the case of rehabilitation for individuals with small-scale debts, if an order of confirmation of the rehabilitation plan becomes final and binding, the claims listed in Article 87, paragraph (1), items (i) through (iii) are modified into rehabilitation claims of the amount specified respectively in the those items.

(2)In the case of rehabilitation for individuals with small-scale debts, if an order of confirmation of the rehabilitation plan becomes final and binding, all rights of creditors in rehabilitation proceedings (in the case of the claims listed in Article 87, paragraph (1), items (i) through (iii), the rights as modified pursuant to the provisions of the preceding paragraph; excluding the claims listed in the items of Article 229, paragraph (3) and claims for a fine, etc. arising prior to the commencement of rehabilitation proceedings) are modified according to the general standards referred to in Article 156.

(3)In the case prescribed in the preceding paragraph, with regard to a rehabilitation claim modified pursuant to the provisions of relevant paragraph that is not a claim without objection or valued claim, until the payment period specified in the rehabilitation plan expires (or until payment based on the rehabilitation plan is completed or the rehabilitation plan is revoked, if these events occur prior to the expiration of the relevant period; the same applies in the following paragraph and paragraph (5)), it is not allowed to make or receive payments or conduct any other acts causing the claim to be extinguished (excluding a release); provided, however, that this does not apply if the creditor in rehabilitation proceedings was unable to file a proof of claim regarding the modified rehabilitation claim within the period for filing a proof of claims due to grounds not attributable thereto, and the grounds have not been extinguished before the order prescribed in Article 230, paragraph (3) is made, or the modified rehabilitation claim was subject to the valuation of the rehabilitation claim.

(4)In the case prescribed in paragraph (2), with regard to any of the claims listed in the items of Article 229, paragraph (3) that is a claim without objection or, valued claim, payment must be made according to the general standards referred to in Article 156, and payment must be made, upon the expiration of the payment period as provided for in the rehabilitation plan, for any amount that remains after deducting the amount paid within the relevant payment period from the amount of the claim in question.

(5)In the case prescribed in paragraph (2), with regard to any of the claims listed in the items of Article 229, paragraph (3) that is not a claim without objection or valued claim, payment must made, upon the expiration of the payment period as provided for in the rehabilitation plan, for the whole amount of the claim in question; provided, however, that the provisions of the preceding paragraph apply in the case prescribed in the proviso to paragraph (3).

(6)In the case prescribed in paragraph (2), for the purpose of application of the provisions of Article 182, Article 189, paragraph (3) and Article 206, paragraph (1), the phrase "rights approved as provided for in the confirmed rehabilitation plan or rights as modified pursuant to the provisions of paragraph (1) of the preceding Article" in Article 182 is replaced with "rights as modified pursuant to the provisions of Article 232, paragraph (2) and claims listed in the items of Article 229, paragraph (3)," the phrase "all rights approved as provided for in the provisions of the rehabilitation plan (excluding the parts of rights already performed)" in Article 189, paragraph (3) is replaced with "all rights as modified pursuant to the provisions of Article 232, paragraph (2) and claims listed in the items of Article 229, paragraph (3) (limited to the part to be paid according to the general standards referred to in Article 156 pursuant to the provisions of Article 232, paragraph (4) (including as applied mutatis mutandis pursuant to the proviso to paragraph (5) of the same Article)) that are the parts not performed", and the phrase "all rights approved as provided for in the rehabilitation plan (excluding those as modified by the special clauses on home loans; excluding the part of rights already performed)" in Article 206, paragraph (1) is replaced with "all rights as modified pursuant to the provisions of Article 232, paragraph (2) (excluding those as modified by the special clauses on home loans) and claims listed in the items of Article 229, paragraph (3) (limited to the part to be paid according to the general standards referred to in Article 156 pursuant to the provisions of Article 232 (4) (including as applied mutatis mutandis pursuant to the proviso to paragraph (5) of the same Article)) that are the parts not performed".

(7)For the purpose of application of the provisions of paragraphs (3) through (5) in cases where an order of confirmation of the rehabilitation plan that specifies special clauses on home loans becomes final and binding, the phrase "payment period as provided for in the rehabilitation plan" in these paragraphs is replaced with "payment period specified in the rehabilitation plan (excluding the special clauses on home loans)," the phrase "payment based on the rehabilitation plan" in the main clause of paragraph (3) is replaced with "payment based on the rehabilitation plan (excluding the special clauses on home loans)," and the phrase "or the modified rehabilitation claim was subject to the valuation of rehabilitation claim" in the proviso to paragraph (3) is replaced with "or the modified rehabilitation claim was subject to the valuation of rehabilitation claim or the right as modified is a home loan claim as modified by the special clauses on home loans."

(8)Notwithstanding the provisions of paragraphs (1) and (2), the effect of modification of rights under these provisions 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 233In the case of rehabilitation for individuals with small-scale debts, rehabilitation proceedings automatically complete as a result of an order of confirmation of the rehabilitation plan becoming final and binding.

Article 234(1)In the case of rehabilitation for individuals with small-scale debts, if it becomes particularly difficult to execute the rehabilitation plan due to unavoidable circumstances after an order of confirmation of the rehabilitation plan is made, the term for debt as provided for in the rehabilitation plan may be extended upon the petition of the debtor subject to rehabilitation proceedings. In this case, the final due date for debt as modified must be within two years from the final due date for debt initially provided for in the rehabilitation plan.

(2)If a petition for modification of the rehabilitation plan is filed pursuant to the provisions of the preceding paragraph, the provisions concerning the procedure to be performed upon submission of a proposed rehabilitation plan apply mutatis mutandis.

(3)The provisions of Article 175 (excluding paragraph (2)) and Article 176 apply mutatis mutandis where an order of modification of a rehabilitation plan is made.

Article 235(1)If it becomes extremely difficult for the debtor subject to rehabilitation proceedings to execute the rehabilitation plan due to grounds not attributable thereto and all of the requirements listed in the following items are satisfied, the court, upon the petition of the debtor subject to rehabilitation proceedings, may issue an order of discharge:

(2)If a petition referred to in the preceding paragraph is filed, the court must hear opinions of holders of filed rehabilitation claims.

(3)If an order of discharge is made, a document stating the main text of the order and the outline of the reasons attached thereto must be served upon the debtor subject to rehabilitation proceedings and holders of filed rehabilitation claims.

(4)An immediate appeal may be filed against a judicial decision on the petition referred to in paragraph (1).

(5)An order of discharge does not become effective unless it becomes final and binding.

(6)If an order of discharge becomes final and binding, the debtor subject to rehabilitation proceedings is discharged from their liabilities for all debts owed to creditors in rehabilitation proceedings (excluding claims listed in the items of Article 229, paragraph (3) and a claim for a fine, etc. arising prior to the commencement of rehabilitation proceedings), except for the parts already performed.

(7)The fact that an order of discharge has become final and binding does not affect any security interests prescribed in Article 53, paragraph (1) held by holders of rights of separate satisfaction, any rights held by creditors in rehabilitation proceedings against the guarantor of the debtor subject to rehabilitation proceedings or any other person who owes debts jointly with the debtor subject to rehabilitation proceedings, or any security provided by persons other than the debtor subject to rehabilitation proceedings in the interest of creditors in rehabilitation proceedings.

(8)For the purpose of application of the provisions of paragraph (2) and paragraph (3) in cases where a rehabilitation plan specifies special clauses on home loans, the term "holders of filed rehabilitation claims" in paragraph (2) is replaced with "holders of filed rehabilitation claims and a person who is subject to a modification of rights by special clauses on home loans," and the phrase "and holders of filed rehabilitation claims" in paragraph (3) is replaced with", holders of filed rehabilitation claims and a person who is subject to a modification of rights by special clauses on home loans."

(9)Notwithstanding the provisions of paragraph (6), the effect of discharge 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 236In the case of rehabilitation for individuals with small-scale debts, if an order of confirmation of the rehabilitation plan becomes final and binding, the court, upon the petition of a creditor in rehabilitation proceedings, may also issue an order of revocation of the rehabilitation plan even when it has become obvious that the total amount of payment based on the plan falls below the total amount of distribution for standard claims as calculated on the assumption that bankruptcy proceedings are enforced against the debtor subject to rehabilitation proceedings at the time when the order of confirmation of the rehabilitation plan is made. In this case, the provisions of Article 189, paragraph (2) apply mutatis mutandis.

Article 237(1)In the case of rehabilitation for individuals with small-scale debts, if the number of voting right holders who have responded, within the period referred to in Article 230, paragraph (4) by the means referred to in the same paragraph, that they do not consent to a proposed rehabilitation plan, is not less than half of the total number of voting right holders, or the amount of voting rights held by voting right holders who have thus responded exceeds half of the total amount of voting rights held by all voting holders, the court, by its own authority, must also issue an order of discontinuance of rehabilitation proceedings. In this case, the provisions of paragraph (7) of the same Article apply mutatis mutandis.

(2)In the case of rehabilitation for individuals with small-scale debts, if the debtor subject to rehabilitation proceedings fails to state assets that should be stated in the inventory of assets or makes a false statement, the court, upon the petition of a holder of filed rehabilitation claim or individual rehabilitation commissioner or by its own authority, may issue an order of discontinuance of rehabilitation proceedings. In this case, the provisions of Article 193, paragraph (2) apply mutatis mutandis.

Article 238In the case of rehabilitation for individuals with small-scale debts, the following provisions do not apply: Article 34, paragraph (2), Article 35, the main clause of Article 37 (limited to the part concerning a consensually-subordinated rehabilitation claim) and the proviso to the same Article, Article 40, Article 40-2 (excluding the part concerning an action filed by a creditor in rehabilitation proceedings pursuant to the provisions of Article 423 of the Civil Code), Article 42, paragraph (2) (limited to the part concerning a consensually-subordinated rehabilitation claim), Chapter III, Sections 1 and 2, Article 85, paragraph (6), Article 87, paragraph (3), Article 89, paragraph (2) and Article 94, paragraph (1) (limited to the parts of the provisions concerning a consensually-subordinated rehabilitation claim), Chapter IV, Section 3 (excluding Article 113, paragraphs (2) through (4)) and Section 4, Article 126, Chapter VI, Section 2, Article 155, paragraphs (1) through (3), Article 156 (limited to the part concerning a consensually-subordinated rehabilitation claim), Articles 157 through 159, Article 163, paragraph (2), the second sentence of Article 164, paragraph (2), Article 165, paragraph (1), Chapter VII, Section 3 (excluding Article 172), Article 174, paragraph (1), Article 174-2, Article 175, paragraph (2), Articles 178 through180, Article 181, paragraphs (1) and (2), Article 185 (including as applied mutatis mutandis pursuant to Article 189, paragraph (8), Article 190, paragraph (2), and Article 195, paragraph (7)), Article 186, paragraphs (3) and (4), Article 187, Article 188, Article 200, paragraphs (2) and (4), Article 202, paragraph (1), Article 205, paragraph (2), and Chapter XII.

Article 239(1)A debtor prescribed in Article 221, paragraph (1), if they are likely to receive a salary or earn similar regular income and the amount of the salary or income is expected to fluctuate within a small range, may request the implementation of rehabilitation proceedings subject to the special provisions prescribed in this Section (hereinafter referred to as "debt rehabilitation for salaried workers").

(2)A request for debt rehabilitation for salaried workers must be made upon filing a petition to commence rehabilitation proceedings (in cases where a creditor has filed a petition to commence rehabilitation proceedings, by the time when an order to commence rehabilitation proceedings is made).

(3)If making a request referred to in the preceding paragraph, the debtor subject to rehabilitation proceedings must clarify whether or not they have the intention of seeking the commencement of ordinary rehabilitation proceedings where it becomes obvious that the relevant request does not satisfy the requirements prescribed in Article 221, paragraph (3) as applied mutatis mutandis pursuant to Article 221, paragraph (1) and Article 244, and also clarify whether or not they have the intention of seeking the commencement of proceedings for rehabilitation for individuals with small-scale debts where it becomes obvious that the grounds falling under any of the following items of paragraph (5) exist; provided, however, that this does not apply where a creditor has filed a petition to commence rehabilitation proceedings.

(4)If the court finds that the request referred to in paragraph (2) obviously does not satisfy the requirements prescribed in the main clause of the preceding paragraph, it makes an order, only before making an order to commence rehabilitation proceedings, to the effect that the rehabilitation case is handled through ordinary rehabilitation proceedings; provided, however, that if the debtor subject to rehabilitation proceedings has clarified, pursuant to the provisions of the main clause of the preceding paragraph, that they have no intention of seeking the commencement of ordinary rehabilitation proceedings, the court must dismiss with prejudice on the merits the petition to commence rehabilitation proceedings.

(5)Beyond the case prescribed in the preceding paragraph, where a request referred to in paragraph (2) is made, and when the court finds that the grounds falling under any of the following items obviously exist, it makes an order, only before making an order to commence rehabilitation proceedings, to the effect that the rehabilitation case will be handled through proceedings for rehabilitation for individuals with small-scale debts; provided, however, that if the debtor subject to rehabilitation proceedings has clarified, pursuant to the provisions of the main clause of paragraph (3), that they have no intention of seeking the commencement of proceedings for rehabilitation for individuals with small-scale debts, the court must dismiss with prejudice on the merits the petition to commence rehabilitation proceedings:

Article 240(1)In the case of debt rehabilitation for salaried workers for salaried workers, where a proposed rehabilitation plan is submitted, the court must make a decision to hear the opinions from holders of filed rehabilitation claims with regard to whether or not the proposed rehabilitation plan should be approved, except in the following cases:

(2)The court, when it has made an order referred to in the preceding paragraph, must make a public notice to that effect, and give a notice to holders of filed rehabilitation claims with regard to the content of the proposed rehabilitation plan or the outline thereof, as well as a notice to the effect that any person who has an opinion that the proposed rehabilitation plan falls under any of the grounds set forth in the items of paragraph (2) of the following Article should submit, within the period specified by the court, the opinion and a document specifically describing the respective grounds.

(3)For the purpose of application of the provisions of Article 95, paragraph (4) and the proviso to Article 167 in the case of debt rehabilitation for salaried workers, the phrase "order to refer the proposed rehabilitation plan to a resolution" in these provisions is replaced with "decision to hear the opinions from holders of filed rehabilitation claims with regard to whether or not the proposed rehabilitation plan should be approved."

Article 241(1)If the period specified pursuant to the provisions of paragraph (2) of the preceding Article has expired, the court issues an order of confirmation of the rehabilitation plan, except in the cases referred to in the following paragraph.

(2)In the cases falling under any of the following items, the court issues an order of disconfirmation of the rehabilitation plan:

(3)The amount of expenses for one year prescribed in item (vii) of the preceding paragraph is specified by Cabinet Order while taking into consideration the age and residential area of the debtor subject to rehabilitation proceedings and persons eligible to receive their support, the number of the persons eligible to receive support, the price situation and any other circumstances concerned.

Article 242In the case of debt rehabilitation for salaried workers, where an order of confirmation of the rehabilitation plan becomes final and binding, the court, upon the petition of a creditor in rehabilitation proceedings, may also issue an order of revocation of the rehabilitation plan when it has become obvious that the total amount of payment based on the plan falls below the total amount of distribution for standard claims as calculated on the assumption that bankruptcy proceedings are enforced against the debtor subject to rehabilitation proceedings at the time when the order of confirmation of the rehabilitation plan is made, or that the rehabilitation plan falls under the case referred to in paragraph (2), item (vii) of the preceding Article. In this case, the provisions of Article 189, paragraph (2) apply mutatis mutandis.

Article 243In the case of debt rehabilitation for salaried workers, the court, by its own authority, must issue an order of discontinuance of rehabilitation proceedings in the cases falling under any of the following items:

Article 244The provisions of Article 221, paragraphs (3) through (5), Articles 222 through Article 229, Articles 232 through 235, and Article 237, paragraph (2) apply mutatis mutandis to debt rehabilitation for salaried workers.

Article 245In the case of debt rehabilitation for salaried workers, the provisions prescribed in Article 238 and the provisions of Article 87, paragraphs (1) and (2), Article 172, Article 174, paragraphs (2) and (3), Article 191, and Article 202, paragraph (2) do not apply.

Article 246(1)A bankruptcy trustee, if a fact constituting grounds to commence rehabilitation proceedings exists. with regard to the bankrupt, may file a petition to commence rehabilitation proceedings against the bankrupt, 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 referred to in the preceding paragraph only where it finds that enforcing rehabilitation proceedings conforms to the common interests of creditors.

(3)If a petition for the permission referred to in paragraph (1) is filed, the court, except where it is obvious that the petition should be dismissed without prejudice or the permission should be granted, must hear opinions of the labor union, etc. (meaning the labor union consisting of the majority of the bankrupt's employees and other workers, if there is any relevant labor union, or the person representative of the majority of the bankrupt's employees and other workers, if there is no labor union consisting of the majority of bankrupt's employees and other workers), before making an order on the petition.

(4)The provisions of Article 23, paragraph (1) do not apply to a petition to commence rehabilitation proceedings filed under the provisions of paragraph (1).

Article 247(1)If the court makes an order to commence rehabilitation proceedings, if 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 39, paragraph (1), the number of denied or 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 to commence rehabilitation proceedings, to the effect that creditors in rehabilitation proceedings who hold rehabilitation claims that have been filed as bankruptcy claims in the bankruptcy proceedings (excluding claims that have been filed as preferred bankruptcy claims prescribed in Article 98, paragraph (1) of the same Act, claims for foreign taxes subject to mutual assistance and claims for fines, etc. prescribed in Article 97, item (vi) of the same Article; hereinafter the same applies in this Article) are not required to file proofs of the rehabilitation 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 made under the provisions of Article 35, paragraph (1), that creditors in rehabilitation proceedings who hold rehabilitation claims that have been filed as bankruptcy claims in the bankruptcy proceedings referred to in the preceding paragraph are not required to file proofs of the rehabilitation claims, and give a notice to known creditors in rehabilitation proceedings 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 referred to in the same paragraph, it is deemed that the persons who have filed proofs of the bankruptcy claims (or persons who have received a change of the name of the holder of a filed claim with regard to the claims filed in the relevant bankruptcy proceedings, if there is any relevant person; the same applies in paragraph (5)) have filed proofs of rehabilitation claims on the first day of the period for filing a proof prescribed in Article 94, paragraph (1).

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

(5)If the person who filed a proof of a claim as a bankruptcy claim has filed a proof of a rehabilitation claim within the period for filing a proof of claims prescribed in Article 94, paragraph (1), the provisions of the preceding two paragraphs do not apply to any claim filed as a bankruptcy claim referred to in paragraph (3), which is held by the person who has filed a proof of a claim as a bankruptcy claim.

(6)The provisions of the preceding paragraphs do not apply where rehabilitation proceedings regarding the order to commence rehabilitation proceedings referred to in paragraph (1) are for rehabilitation for individuals with small-scale debts or debt rehabilitation for salaried workers.

Article 248If, before or after the commencement of bankruptcy proceedings, an order to commence rehabilitation proceedings is made against the same debtor, the court (meaning a judge or panel of judges in charge of the bankruptcy case), if it finds it appropriate in order to handle the bankruptcy case, by its own authority, may transfer the bankruptcy case to the rehabilitation court.

Article 249(1)If, with regard to the debtor subject to rehabilitation proceedings against whom bankruptcy proceedings have not yet been commenced, an order of revocation of the order to commence rehabilitation proceedings, an order of discontinuance of rehabilitation proceedings, an order of disconfirmation of the rehabilitation plan or an order of revocation of the rehabilitation plan (limited to one based on a petition filed prior to the close of rehabilitation proceedings; hereinafter the same applies in this Article) is made, notwithstanding the provisions of Article 39, paragraph (1), a petition to commence bankruptcy proceedings may be filed with the rehabilitation court against the relevant debtor subject to rehabilitation proceedings even before the respective order becomes final and binding. The same applies where, with regard to the debtor subject to rehabilitation proceedings against whom the bankruptcy proceedings have already been commenced, an order of discontinuance of rehabilitation proceedings or an order of revocation of the rehabilitation plan under the provisions of Article 193 or 194 is made, after the bankruptcy proceedings cease to be effective as a result of an order of confirmation of the rehabilitation plan becoming final and binding.

(2)An order to commence bankruptcy proceedings based on the petition to commence bankruptcy proceedings filed under the provisions of the preceding paragraph may not be made unless an order prescribed in the first sentence of the same paragraph or an order of discontinuance of rehabilitation proceedings or order of revocation of the rehabilitation plan referred to in the second sentence of the same paragraph becomes final and binding.

Article 250(1)If, with regard to the debtor subject to rehabilitation proceedings against whom bankruptcy proceedings have not yet been commenced, an order of dismissal with prejudice on the merits of a petition to commence rehabilitation proceedings, an order of discontinuance of rehabilitation proceedings, an order of disconfirmation of the rehabilitation plan or an order of revocation of the rehabilitation plan becomes final and binding, when the court finds that a fact constituting the grounds to commence bankruptcy proceedings exists with regard to the debtor subject to rehabilitation proceedings, by its own authority, the court may make an order to commence bankruptcy proceedings in accordance with the Bankruptcy Act.

(2)If, with regard to the debtor subject to rehabilitation proceedings against whom the bankruptcy proceedings have already been commenced, an order of discontinuance of rehabilitation proceedings or an order of revocation of the rehabilitation plan under the provisions of Article 193 or 194 is made, after the bankruptcy proceedings cease to be effective as a result of an order of confirmation of the rehabilitation plan becoming final and binding, the court, by its own authority, must make an order to commence bankruptcy proceedings in accordance with the Bankruptcy Act; provided, however, that this does not apply if the court makes an order to commence 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 251(1)In the following cases, the court, if it finds it necessary, may by its own authority issue a stay order under the provisions of Article 24, paragraph (1) of the Bankruptcy Act, comprehensive prohibitory injunction prescribed in Article 25, paragraph (2) of the same Act, provisional remedy under the provisions of Article 28, paragraph (1) of the same Act, order for temporary administration prescribed in Article 91, paragraph (2) of the same Act or provisional remedy under the provisions of Article 171, paragraph (1) of the same Act (hereinafter referred to as a "provisional remedy, etc." in this Article and Article 254, paragraph (4)):

(2)If the court, after issuing a provisional remedy, etc. under the provisions of item (i) of the preceding paragraph, has decided not to make an order to commence bankruptcy proceedings under the provisions of paragraph (1) of the preceding Article, it must revoke the relevant provisional remedy, etc. without delay.

(3)The provisional remedy, etc. issued under the provisions of paragraph (1), item (i) ceases to be effective if an order to revoke the relevant order prescribed in the same item is made. The same applies to a provisional remedy, etc. issued under the provisions of paragraph (1), item (ii) if an order to revoke the order of discontinuance of rehabilitation proceedings or order of revocation of the rehabilitation plan referred to in paragraph (1), item (ii) 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 252(1)In the following cases concerning the debtor subject to rehabilitation proceedings against whom 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), items (ii) and (iii), Article 72, paragraph (1), item (iv) and paragraph (2), items (ii) and (iii), Article 160 (excluding paragraph (1), item (i)), Article 162 (excluding paragraph (1), item (ii)), Article 163, paragraph (2), Article 164, paragraph (1) (including as applied mutatis mutandis pursuant to paragraph (2) of the same Article), Article 166, and Article 167, paragraph (2) (including as applied mutatis mutandis pursuant to Article 170, paragraph (2) of the same Act); the same applies in paragraph (3)), a petition to commence rehabilitation proceedings and related proceedings. (in cases where an order of dismissal with prejudice on the merits of a petition to commence rehabilitation proceedings, an order of discontinuance of rehabilitation proceedings, an order of disconfirmation of the rehabilitation plan or an order of revocation of the rehabilitation plan (limited to one based on a petition filed prior to the close of rehabilitation proceedings) becomes final and binding, this phrase means a petition to commence rehabilitation proceedings, petition to commence special liquidation in the proceedings for special liquidation that have ceased to be effective as a result of the commencement of rehabilitation proceedings, or any act conducted by the debtor subject to rehabilitation proceedings or their statutory agent or the director or executive officer of the debtor subject to rehabilitation or any other person equivalent thereto, which constitutes the crime referred to in Article 265 of the Bankruptcy Act, and in cases where an order of revocation of the rehabilitation plan, which is not based on a petition filed prior to the close of rehabilitation proceedings, becomes final and binding, the phrase means a petition for revocation of the rehabilitation plan; hereinafter the same applies in this paragraph) is a petition to commence bankruptcy proceedings only where no petition to commence bankruptcy proceedings has been filed prior to the petition to commence rehabilitation proceedings and related proceedings:

(2)For the purpose of application of the provisions of the first sentence of Article 176 of the Bankruptcy Act in cases where an order to commence bankruptcy proceedings prescribed in the items of the preceding paragraph is made upon the closing of rehabilitation proceedings as a result of an order of disconfirmation of the rehabilitation plan, order of discontinuance of rehabilitation proceedings or order of revocation of the rehabilitation plan becoming final and binding, the date of the order to commence rehabilitation proceedings is the date of commencement of bankruptcy proceedings referred to in the first sentence of the same Article.

(3)For the purpose of application of the relevant provisions of the Bankruptcy Act in cases where, with regard to the debtor subject to rehabilitation proceedings against whom bankruptcy proceedings have already been commenced, an order to commence bankruptcy proceedings is made based on a petition to commence bankruptcy proceedings filed under the provisions of the second sentence of Article 249, paragraph (1) or an order to commence bankruptcy proceedings is made under the provisions of Article 250, paragraph (2), it is deemed that a petition to commence bankruptcy proceedings is filed at the time when the petition specified in each of the following items is filed for the categories listed in the respective items:

(4)For the purpose of application of the provisions of the first sentence of Article 176 of the Bankruptcy Proceedings in cases where an order to commence bankruptcy proceedings prescribed in the preceding paragraph is made (limited to the case set forth in item (i) of the same paragraph), 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 rehabilitation plan becoming final and binding is the date of commencement of bankruptcy proceedings referred to in the first sentence of the same Article.

(5)For the purpose of application of the provisions of Article 149, paragraph (1) of the Bankruptcy Act if an order to commence bankruptcy proceedings prescribed in the items of paragraph (1) or in paragraph (3) is made (excluding the case set forth in paragraph (3), item (ii)), the phrase "the three months preceding the commencement of bankruptcy proceedings" in the same paragraph is replaced with "the three months preceding the commencement of bankruptcy proceedings (or the three months preceding the commencement of rehabilitation proceedings if an order to commence rehabilitation proceedings is made prior to the date of commencement of bankruptcy proceedings)."

(6)If an order to commence bankruptcy proceedings prescribed in the preceding paragraph is made, common benefit claims (including the claims prescribed in Article 50, paragraph (2) and Article 120, paragraphs (1) and (4) if rehabilitation proceedings are not commenced) are claims on the estate. The same applies where, with regard to the debtor subject to rehabilitation proceedings against whom the bankruptcy proceedings have already been commenced, bankruptcy proceedings commenced against the debtor subject to rehabilitation proceedings are continued as a result of an order of dismissal with prejudice on the merits of a petition to commence rehabilitation proceedings becoming final and binding, an order of discontinuance of rehabilitation proceedings under the provisions of Articles 191 through 193, Article 237 and Article 243 becoming final and binding before an order of confirmation of the rehabilitation plan becoming final and binding, or an order of disconfirmation of the rehabilitation plan becoming final and binding.

Article 253(1)If the court (meaning a judge or panel of judges in charge of the bankruptcy case; hereinafter the same applies in the following Article) makes an order to commence bankruptcy proceedings prescribed in the items of paragraph (1) of the preceding Article or in paragraph (3) of the same Article, if it finds it appropriate while taking into consideration the content and cause of each rehabilitation claim as well as the amount of the voting right as filed in the rehabilitation proceedings that are closed, the number of denied or disputed rehabilitation claims prescribed in the main clause of Article 105, paragraph (1), 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 relevant order to commence bankruptcy proceedings, to the effect that bankruptcy creditors who hold bankruptcy claims that have been filed as rehabilitation claims in the rehabilitation proceedings (excluding claims for fines, etc. arising prior to the commencement of rehabilitation proceedings and claims for foreign taxes subject to mutual assistance; hereinafter the same applies in this Article) are not required to file proofs of the relevant bankruptcy claims.

(2)If the court has made an order pursuant to the provisions of the preceding paragraph, it must indicate, in the public notice to be made under the provisions of Article 32, paragraph (1) of the Bankruptcy Act, that bankruptcy creditors who hold bankruptcy claims that have been filed as rehabilitation claims in the rehabilitation proceedings referred to in the preceding paragraph are not required to file proofs of the bankruptcy claims, and 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 that have been filed as rehabilitation claims in the rehabilitation proceedings referred to in the same paragraph, it is deemed that the persons who have filed proofs of the rehabilitation claims (or persons who have received a change in the name of the holder of a filed claim with regard to the claims filed in the rehabilitation proceedings, if there is any relevant person; the same applies in paragraph (6)) have filed proofs 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 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 filed particulars listed in the following items regarding a claim that has been filed as a rehabilitation claim, it is deemed that the particulars specified in the respective items have been filed when filing a proof of a bankruptcy claim:

(5)Notwithstanding the provisions of the items of the preceding paragraph (excluding item (iv)), if the rehabilitation proceedings referred to in paragraph (1) are for rehabilitation for individuals with small-scale debts or debt rehabilitation for salaried workers, the amount and grounds for the filed rehabilitation claim as well as the estimated amount of deficiency (including the amount and grounds for the rehabilitation claim as well as the estimated amount of deficiency that is filed pursuant to the provisions of Article 225) is the amount and grounds for the bankruptcy claim as well as the amount of the claim for which payment is not expected to be received by exercising a right of separate satisfaction set forth in Article 111, paragraph (2), item (ii) of the Bankruptcy Act, respectively, in the filing of a proof of claim.

(6)If the person who filed a proof of a claim as a rehabilitation claim has filed a proof of 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 rehabilitation claim referred to in paragraph (3), which is held by the person who filed a proof of a claim as a rehabilitation claim.

(7)The provisions of the preceding paragraphs apply mutatis mutandis to bankruptcy proceedings regarding an order to commence bankruptcy proceedings that are enforced against the debtor subject to rehabilitation proceedings prior to the complete implementation of the rehabilitation plan.

Article 254(1)If rehabilitation proceedings are closed as a result of an order of disconfirmation of the rehabilitation plan, an order of discontinuance of rehabilitation proceedings or an order of revocation of the rehabilitation plan becoming final and binding, if an order to commence bankruptcy proceedings prescribed in the items of Article 252, paragraph (1) or in paragraph (3) of the same Article is made, a bankruptcy trustee may substitute for a party in an action referred to in Article 137, paragraph (1) that is discontinued pursuant to the provisions of Article 68, paragraph (2) or Article 137, paragraph (6) (including one referred to in Article 137, paragraph (1) that is pending at the time of closing of rehabilitation proceedings and is discontinued pursuant to the provisions of Article 141, paragraph (1); the same applies in paragraphs (3) and (4)). In this case, a petition for the substitution in 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 supervisor granted authority to avoid or a trustee is a claim on the estate.

(3)In the case referred to in paragraph (1), if the bankruptcy proceedings are closed before a substitution is made under the provisions of paragraph (1) in the action referred to in Article 137, paragraph (1) discontinued pursuant to the provisions of Article 68, paragraph (2) or Article 137, paragraph (6), the action is closed.

(4)An action referred to in Article 137, paragraph (1), which is discontinued pursuant to the provisions of Article 68, paragraph (2) or Article 137, paragraph (6) and pertains to a rehabilitation case involving the debtor subject to rehabilitation proceedings against whom bankruptcy proceedings have not yet been commenced, is closed if an order to commence bankruptcy proceedings prescribed in the items of Article 252, 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, a provisional remedy, etc. is issued under the provisions of Article 251, paragraph (1), item (i) or a provisional remedy, etc. is issued in bankruptcy proceedings based on a petition to commence bankruptcy proceedings set forth in the items of Article 252, paragraph (2), the part of the period is excluded).

(5)The proceedings for assessment based on a petition for assessment referred to in the main clause of Article 105, paragraph (1), which continue to be pending pursuant to the provisions of Article 112-2 (1), are closed if an order to commence bankruptcy proceedings prescribed in the items of Article 252, paragraph (1) or in paragraph (3) of the relevant Article is made. In this case, the provisions of Article 112-2, paragraph (3) do not apply.

(6)The provisions of paragraph (4) apply mutatis mutandis to an action referred to in Article 106, paragraph (1), which is discontinued pursuant to the provisions of Article 112-2, paragraph (4) and pertains to a rehabilitation case involving the debtor subject to rehabilitation proceedings against whom bankruptcy proceedings have not yet been commenced.