1. What is a Rehabilitation Plan?

A rehabilitation plan stipulates the amount and manner of payment to be made rehabilitation creditors, as well as the provisions and the like to amend all or part of creditors’ rights. The plan  will be effective if it is approved with the consent of a majority of creditors and finalized following the relevant court’s approval and confirmation.  To approve a rehabilitation plan, (i) 1/2 or more of the total amount represented by voting rights (requirement for the number of voting rights); and (ii) a majority of voting right holders who attended the creditors’ meeting or who voted in writing (requirement for the number of voting right holders), must be fulfilled.

Accordingly, when, how, and the amount creditors will be paid will be determined depending on the content of the rehabilitation plan, and in order to realize the content of the rehabilitation plan, creditors are required to consent to the plan.

2. Purpose of Preparing a Rehabilitation Plan

In rehabilitation proceedings, a rehabilitation plan that reflects creditors’ opinions should be prepared and implemented. In the present case, however, there are at least 25,000 or more creditors, each of whom may have different opinions; it is therefore not realistic to completely meet the requests of all creditors; thus, the rehabilitation plan must be of the content that meets the greatest common interests of creditors.  That being said, we believe that creditors’ opinions with regard to basic matters are consistent.

As the rehabilitation plan will be primarily prepared by the bankruptcy trustee, we first intend to propose to the bankruptcy trustee a plan that is considered to be desirable for creditors. In order to certainly and promptly realize the rehabilitation plan, it must also be prepared taking into consideration laws and practices concerning rehabilitation proceedings in Japan.

Also, the bankruptcy trustee might prepare a rehabilitation plan the content of which is not acceptable for creditors. In such a case, creditors can submit a rehabilitation plan prepared on their own.  Whether the plan prepared by the bankruptcy trustee, or that prepared by creditors, will be adopted, will be determined by a majority vote of creditors at the creditors’ meeting, after the court’s examination.

The rehabilitation plan will ultimately be determined by a majority voting at the creditors’ meeting, and the right to determine it is left to creditors. We are of the stance to have the rehabilitation plan, which is to be submitted to the creditors’ meeting, reflect creditors’ opinions to the fullest extent, so that their interests will be protected.  Accordingly, creditors will not be bound by the outline of the rehabilitation plan proposed in the “Basic Policy for the Rehabilitation Plan” which will be released by us on this website; the ultimate decision is left to creditors, to be made by a voting at the creditors’ meeting.

Considering practices of rehabilitation proceedings in Japan, we will strive to submit to the creditors’ meeting a rehabilitation plan which incorporates creditor opinions to the fullest extent, and as a part of our activities, we intend to negotiate with the bankruptcy trustee.