Turnaround ADR: Difference between revisions
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{{nihongo|'''Turnaround Alternative Dispute Resolution (ADR)'''|[[Japanese language|Japanese]]: 所要| Jigyo Saisei ADR}} is an out-of-court procedure increasingly used by companies in [[Japan]] to adjust their debt. The procedure was established in 2007 Japan based on [[Law of Japan|Japanese Law]].<ref name="sumitomo>{{cite web | url = http://www.sumitomotrust.co.jp/ir/company/en/pdf/nr2009/E090918.pdf | title = Preparation for Turnaround ADR Procedure by a debtor of The Sumitomo Trust and Banking Co., Ltd. | author = The Sumitomo Trust and Banking Co., Ltd. | date = September 18, 2009 | language = English | format = Whitepaper}}</ref> |
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Although the procedure is named by borrowing the [[Alternative Dispute Resolution]] name, Turnaround ADR is not a procedure intended to resolve disputes. Rather it offers a means for financially-stressed companies to adjust the [[debt]]s they shoulder. This means was established in Japan in order to overcome disadvantages of voluntary debt adjustments under previous-existing procedures such as the "Guideline for Voluntary Debt Adjustment". |
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== Features == |
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When a Turnaround ADR is applied, the debtor can maintain payment to their business partners and customers. Only claims held by financial institutions participating in this procedure become subject to adjustment and are reduced based on consensus reached by all parties. |
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The process is frequently misunderstood in the West because no equivalent procedure exists. Turnaround ADR is not a default triggering event. In fact, adoption of a Turnaround ADR is considered a preferable procedure for stressed companies as it allows for breathing space to allow them to work toward revitalizing their business. Such space is gained by reduction of debts against financial institutions without adversely affecting integral business relationships with partners and customers. |
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A private operator certified by the [[Minister of Justice (Japan)|Minister of Justice]] and the [[Minister of Economy, Trade and Industry (Japan)|Minister of Economy, Trade and Industry]], provides mediation services in a Turnaround ADR. The [[Japanese Association of Turnaround Professionals]] (JATP) is the only certified private operator to provide mediation services for Turnaround ADR. In this role, JATP normally appoints a from a network of corporate turnaround professionals a mediator. This mediator is responsible for implementing the Turnaround ADR procedure fairly and objectively. |
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== References == |
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