Coordination-Type Business Revitalization Support Operations
1.Extensive Revitalization Experience
Since 2002, we have handled more than 210 varied revitalization cases throughout Japan, and have accumulated extensive experience and expertise in business revitalization support operations.
(For our track record in handling turnaround cases, please refer to "Track Record of Coordination-Type Business Revitalization Support Operations.")
2.Broad Range of Eligible Business Operators
At RCC, there are no restrictions in relation to the size of the business operator, industry, or corporate form. We handle revitalization support cases involving not only SMEs but also other business operators, medical and nursing-care service providers, credit card companies, businesses with overseas subsidiaries, and third-sector entities.
In some cases, coordination may also include creditors other than financial institutions as parties eligible for support.
Additionally, businesses dealing with only a single financial institution are eligible as well.
(However, in such cases, the corporate rehabilitation tax system described below cannot be applied.)
3.Review by an External Expert Body
As a body that professionally and impartially determines whether rehabilitation is feasible, we have established the Corporate Rehabilitation Review Committee, which is composed of outside experts. By obtaining the Committee's review and approval of a rehabilitation plan, we ensure the objectivity and fairness of the plan.
4.Reduction of the Burden of Financial Support, etc.
Besides the second-company scheme (such as company splits and business transfers), RCC has implemented many rehabilitation cases using a going-concern scheme to preserve the existing company while applying the corporate rehabilitation tax system (*).
By applying the corporate rehabilitation tax system, it is possible to develop an advantageous tax plan--for example, allowing expired tax loss carryforwards to be deducted on a priority basis when absorbing gains from debt forgiveness, while preserving blue-form tax losses for the rehabilitated company. Aditionally, costs associated with company splits and business transfers can be avoided. As a result, the burden of financial support on financial institutions can be reduced.
Furthermore, under the going-concern scheme, procedures for obtaining licenses and permits necessary for business continuation can be avoided, enabling rehabilitation to be implemented promptly.
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Corporate Rehabilitation Tax System
In addition to legal reorganization proceedings under the Civil Rehabilitation Act, where debt forgiveness or similar measures are carried out in a private restructuring that meets certain requirements equivalent to such legal proceedings (including the RCC Corporate Rehabilitation Scheme and the RCC Corporate Rehabilitation Scheme II), the following measures are provided under the Corporation Tax Act for the debtor corporation:
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(1)Measures to include the amount of gains or losses from asset revaluation in gross revenue or deductible expenses.
(Corporation Tax Act, Article 25, paragraph 3; Article 33, paragraph 4) -
(2)Where the measures in (1) above apply, measures to give priority, in the deduction of tax loss carryforwards, to losses other than blue-form tax losses
(limited to the amount up to the amount of gains from debt forgiveness, etc.).
(Corporation Tax Act, Article 59, paragraph 2)