Companies Act

If the court issues an order to commence special liquidation, the court may, in response to a petition by the liquidators, company auditors, creditors or shareholders or ex officio, prescribing a reasonable period of time, order the suspension of the procedures to enforce athe security interest (including the prohibition of the enforcement of a pledge over a claim; the same applies in the following paragraph), the suspension of the procedures to enforce the charge on whole company assets or the suspension of the judicial enforcement procedures if the court finds that it suits the general interests of the creditors and that those who petitioned for the procedures to enforce have a security interest in the assets of the security interest (meaning proceduresliquidating stock company (referred to enforce the as "security interest the assets ofholders" in the liquidating stock company, following paragraph and Article 891), those who petitioned for procedures to enforce charge on whole company assets or those who petitioned for judicial enforcement procedures based on the general liens and other claims that have general priority that have already been enforced against the assets of the liquidating stock company; hereinafter the same applies (referred to as "general lien holders, etc." in thisthat Article) are not likely to suffer undue loss.

An order to suspend under the provisions of the preceding paragraph (limited to one relating to the suspension of procedures to enforce a security interest that exists in the assets of the liquidating stock company) may be issued with conditions attached that are necessary to prevent undue loss to the security interest holders.

When an order to suspend under the provisions of paragraph (1) prohibiting the enforcement of a pledge over a claim has been issued, prescription is not completed with respect to the claim secured by that pledge until the day on which two months have elapsed from the day following the day on which that order ceased to be effective.

If the court has ordered, pursuant to the provisions of paragraph (1) of the preceding Article, the suspension of procedures to enforce a pledge over a claim (including the prohibition of enforcement; the same applies in Article 891, paragraphs (1) and (2)), the third-party obligor may not assert, in relation to the special liquidation, the effect of a payment made to the pledgee or of any other act extinguishing the obligation; provided, however, that this is limited to when the third-party obligor knew, at the time of that act, that the order had been issued.

In the case prescribed in the main clause of the preceding paragraph (limited to the case where the subject matter of the claim is money), the third-party obligor may be released from the obligation by depositing money equivalent to the full amount of the claim.

When a deposit under the provisions of the preceding paragraph has been made, the pledgee who held a pledge over the claim referred to in that paragraph has the same rights with respect to the deposited money as a pledgee.

The court must, when issuing an order to suspend under the provisions of Article 516, paragraph (1) (excluding an order to suspend procedures to enforce a pledge over a claim), hear statements by the security interest holders, the petitioner of the procedures to enforce security interests prescribed in that Articlecharge on whole company assets or the general lien holders, etc.

The court may change or revoke the must, when it has issued an order to suspend referredprocedures to in enforce a pledge over a claim under the preceding provisions of Article 516, paragraph (1), promptly hear statements by the pledgee; provided, however, that this does not apply if the court has heard statements by the pledgee in advance.

Only the petitioner referred to in paragraph (1)The court may enter an immediate appeal againstchange or revoke the order to suspend referred to in paragraph (1) and a ruling to change under the provisions of the preceding paragraphtwo paragraphs.

The Only the security interest holders, the petitioner of the procedures to enforce charge on whole company assets or the general lien holders, etc. may enter an immediate appeal against the order to suspend referred to in the preceding paragraph does not have paragraphs (1) and (2) and a ruling to change under the effectprovisions of staying executionthe preceding paragraph.

If the judicial decision prescribed in paragraph (3) or a judicial decision on theThe immediate appeal referred to in that paragraph is made, the written judgment thereof must be served on the partiespreceding paragraph does not have the effect of staying execution.

If the judicial decision prescribed in paragraph (4) or a judicial decision on the immediate appeal referred to in that paragraph is made, the written judgment thereof must be served on the parties.