DBJ can support corporate revitalization issues, address client issues in the ways described below.
- Pare down to their operational viability businesses that are suffering management slumps owing to past factors, such as excessive debts
- Recover outside trust, which is difficult to achieve while operating under civil rehabilitation or corporate reorganization plan indebtedness
- Provide debtor-in-possession financing as temporary working capital to enable companies to continue operating and maintain value while the viability of plans are being reviewed in accordance with applications filed under Civil Rehabilitation Law or Corporate Reorganization Law
Specifically, after formulating and reviewing business plans with clients, DBJ assists with the refinancing of existing debt, the provision of medium- to long-term funding, the sourcing of funding sponsors, the supply of funds for business revitalization, exit financing*, DIP financing and the provision of M&A services.
※Exit financing is used to procure funds to allow bullet repayments of rehabilitation or bankruptcy bonds of a company that is undergoing civil rehabilitation or bankruptcy proceedings. Such bullet repayments allow companies to emerge from legal proceedings, enable management to regain its independence, raise levels of trust with business partners, expand business opportunities and contribute to the regularization of banking transactions.
Nakamura Jozo Co., Ltd.
In Nakamura Jozo's case, the Bank provided DIP financing using the company's inventory of unpasteurized soy sauce as collateral.