What measures are taken when filing for corporate rehabilitation procedures?

When an application for the commencement of corporate rehabilitation procedures is received, the court first orders payment of expenses required for the corporate rehabilitation procedures and conducts an examination of the representative.

Typically, to prevent the risk of the debtor managing the business recklessly or escaping/concealing assets before the decision to commence rehabilitation procedures, the court decides on preservation measures for the assets.

Accordingly, until the decision to commence corporate rehabilitation procedures, orders such as prohibition of repayment, prohibition of disposing assets above a certain amount, prohibition of monetary borrowing, and prohibition of hiring executives and employees may be issued to the debtor.

Also, the court may suspend individual compulsory execution against the debtor's assets, or issue a comprehensive prohibition order prohibiting future compulsory execution against all rehabilitation creditors and rehabilitation secured creditors.

Lastly, an application for commencement of corporate rehabilitation procedures can be withdrawn until the decision to commence is made, but after preservation measures, stay orders, or comprehensive prohibition orders have been issued, withdrawal is possible only with court permission.

For detailed information related to corporate rehabilitation procedures, please consult with an attorney.