If I apply for corporate rehabilitation proceedings, what measures are taken?

When an application to commence corporate rehabilitation proceedings is filed, the court first orders the advance payment of the costs necessary for the rehabilitation proceedings and conducts an examination of the debtor's representative.

Usually, before the decision to commence corporate rehabilitation proceedings, in order to prevent the risk that the debtor will run the business recklessly or divert or conceal assets, the court issues a preservative measure over the property.

This disposition includes orders to the debtor such as a prohibition on repayment, a prohibition on disposing of property above a certain amount, a prohibition on borrowing money, and a prohibition on hiring officers and employees.

In addition, the court may suspend individual compulsory execution against the debtor's property or issue a comprehensive prohibition order banning future compulsory execution against all rehabilitation creditors and holders of security interests.

Meanwhile, an application to commence corporate rehabilitation proceedings can be freely withdrawn only until the commencement decision, and after a preservative measure, a suspension order, or a comprehensive prohibition order has been issued, withdrawal is possible only with the court's permission.

Therefore, it is advisable to consult a corporate rehabilitation attorney who has handled many corporate rehabilitation cases regarding the details.

A corporate rehabilitation attorney will promptly prepare a response tailored to each individual's situation.