“Early stage restructuring” refers to business restructuring before financial assistance to a debtor by a financial institution becomes a necessity, such as the rescheduling of debts. Even at the stage before cash-flow becomes limited, a company is often concerned about its future business continuity due to reasons such as explanatory notes to financial statements regarding the assumption of a going concern, a bad credit rating or reputation from financial institutions and customers, and a deterioration of cash-flow. In such cases, early stage restructuring by means of intensive commitment of business resources to both growth and high-profitable businesses with necessary fund raising is essential. For this purpose, early withdrawal of unprofitable businesses, consolidation or liquidation of subsidiaries and the encouragement of early retirement should be conducted.
Nishimura & Asahi provides legal services for early stage restructuring to both global enterprises and SMEs, assembling a highly experienced and knowledgeable team consisting of a full range of specialists in our firm.