Examples of Civil Rehabilitation Act in a sentence
When an Obligor becomes insolvent, the Bankruptcy Act, the Civil Rehabilitation Act or the Corporate Reorganization Act will apply to that Obligor.
In these Conditions, “Relevant Proceedings” means proceedings of or equivalent to bankruptcy, reorganisation, rehabilitation or special liquidation procedures or adjustment under the Bankruptcy Act, the Corporate Reorganisation Act, the Civil Rehabilitation Act or the Companies Act in respect of any corporations incorporated in Japan, or any other similar applicable law of Japan or any other jurisdiction.
For claims to debtors who are legally bankrupt (due to bank- ruptcy, subject to the Civil Rehabilitation Act of Japan, suspension of transactions with banks by the rules of clearinghouses and others) or virtually bankrupt, the specific allowance is provided based on the amount of claims, deducting the amount expected to be collect- ed through the disposal of collateral or execution of guarantees.
In contrast to the U.S. Bankruptcy Act, the Civil Rehabilitation Act does not have automatic stay on secured claims.
Evaluation of the Civil Rehabilitation Act, Compared with Proposed Mechanisms Compared with those proposals (aside from the menu approach), the Civil Rehabilitation Act looks more like Chapter 11 in that it basically attempts to help the firms be reorganized through the negotiation among the firms’ stakeholders.
Difficulty of the Civil Rehabilitation Act: the Debtor’s Liquidity-Constraint To talk about the potential problem of the Civil Rehabilitation Act first, its requirement of one-time payment may make it too difficult for debtors to exercise their options because they are typically liquidity-constrained.137 Of course, a debtor in liquidity-constraint will try to obtain a loan, and in so doing, she can collateralize the very property the security interests in which she tries to extinguish.
Ryoichi Hanamura, Minji saisei ho yosetsu [Introduction to the Civil Rehabilitation Act] 111-12 (2000).
Besides, not only closely held companies but also publicly held corporations are reorganized under the Civil Rehabilitation Act.
By giving the secured creditor an option to enforce his right, -- perhaps after some limited period of temporary stay177 – the Civil Rehabilitation Act attempts to prevent the debtor from prolonging the bankruptcy procedure at the costs of the creditors without many prospects of successful reorganization.
While the Civil Rehabilitation Act requires the debtor to make one-time payment of the collateral in order to extinguish security interests,134 Chapter 11 allows the debtor to make deferred payments for cramdown.135 This section analyzes the relative advantages of these two rules.136 1.