The Law on Recognition of and Assistance in Foreign Insolvency Proceedings (“LRAF”) and the Law to Amend a Portion of Civil Rehabilitation Law, etc. (“LACR”) were both enacted on November 21, 2000, and have been in effect since April 1, 2001. The LRAF and LACR were enacted in order to abolish rigid territoriality, as well as to introduce procedures to recognize foreign insolvency proceedings based upon the Model Law of UNCITRAL. By such amendments, it is broadly
expected that the insolvency proceedings of Japan will be able to be handled in smooth cooperation and harmonization with foreign insolvency proceedings.